Please make reference to the above my post published on 14th March 2019.
The mother share and WA were RM0.340 and RM0.110 respectively.
Then 3 days after that on 17th March, I wrote a comment to the post that we should take profit as both mother share and WA had gone up so much.
7 months has passed, let us check again what happen to SAPNRG and SAPNRG-WA now.
Surprisingly, they are RM0.270 and RM0.125 now.
Mother share has gone down 7 cents or 21%!
But WA is RM0.125, still 1.5 cents higher than the then RM0.110!
This is crazy.
Anyway, let the calculation tells.
1) The mother share volatility, calculated from the last 90 trading days was 32%, significant drop from last March's 45%.
2) For the interest rate, last March I input 4%, so now also key-in 4% lor.
3) Aiya, the fair value for SAPNRG-WA is only RM0.055 now, the market price of RM0.125 is very very expensive lei.
But wait, wait a moment,
I always say that the interest rate is actually used as the average return per year in the calculation.
Why not put a higher %? May be the market is believing SAPNRG could provide high return to the shareholders lei?
OK, OK, I trial and error lor, until the fair value approaching the market price of RM0.125.
Wow, the interest rate has to be as high as 16% lei.
For your info, for the purpose of evaluating whether to buy or not a structured / company warrant, I never input interest rate higher than 8%.
So, after talking so much, what is my conclusion?
At the moment I dun have any SAPNRG or SAPNRG-WA.
I might want to buy SAPNRG-WA again if I find the market price is very much lower than the fair value.
For your info, for this company SAPNRG, I will key-in interest rate of maximum 4% only.
Trade at your own Risk!