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Thursday, October 23, 2014

Company Warrants Expiring in 2014 - Actions Needed

I need to remind myself all the outstanding company warrants that are expiring in 2014 in my portfolio which I will need to take action. I will update this list accordingly as I go along so that I won't forget about them.

WEE HUR W140222, Expiry Date: 22 Feb 2014, Exercise price = $0.25, Conversion ratio 1:1 - Warrants exercised and converted to shares.
ASIATRAV W140717, Expiry Date: 17 July 2014, Exercise price = $0.245, Conversion ratio 1:1 - Warrants exercised and converted to shares.
GBLYELLOW140910, Expiry Date: 10 Sep 2014, Exercise price = $0.107, Conversion ratio 1:1 - Warrants expired worthless.
NOBEL DESW141021, Expiry Date: 21 Oct 2014, Exercise price = $0.23, Conversion ratio 1:1 - Warrants exercised and converted to shares.
TIH W170519, First Exercise Date: 19 Nov 2014, Exercise price = $1.28, Conversion ratio 1:1 - Warrants not exercised.

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8 Comments:

Blogger Ednet said...

Hi! Do you do day trading? What do you think of day trading?

7:23 PM  
Blogger ghchua said...

Hi Ednet,

Unfortunately, I don't do day trading and therefore I could not give you any advice. However, I do know that you really need to have a stop loss and take profit target in place when doing day trading.

7:51 PM  
Blogger Andrew Lim said...

Hi, noticed that ur significantly vested in united engineers. There's quite a lot of negativity associated with the counter especially since many feel that they overpaid for WBL, and have no clear strategy of managing such a diverse portfolio that comes with WBL.

9:37 PM  
Blogger ghchua said...

Hi Andrew,

I have increased my stake in UE mostly through the rights issue that they conducted last year. The negative impact of the WBL deal had been priced into the stock during that time when it was trading way below its NTA.

They have a clear strategy of managing their stake in WBL. UE is not new to the auto business and also they have OCBC as a majority shareholder to guide them. Basically, they will not hesitate to sell off those non core assets that they acquire from WBL, while integrating those that are in synergy with UE.

Besides WBL's businesses, UE is an unique opportunity for one to invest to get exposure to residential, commercial, industrial, hospitality and mixed developments markets. Rarely you could have one company with exposure to so many sectors of the property market. It also has a listed construction arm, UE E&C which is doing pretty well and commands decent profit margins.

Given time, I believe that a lot of value could be unlocked for this company which has been around for more than 100 years. You just have to be patient to stay with the company for long term and ignore short term market noises.

2:27 AM  
Blogger Andrew Lim said...

Agree with what your analysis. There seems to be some suggestions of hidden value within the assets of both companies. I'm sure with the backing of OCBCs expertise, network , theyll be able to unlock some value in the stock. Price has still stayed strong despite the poor Q1 showing. Just wondering if they made public any clear strategies on managing their WBL stake?

9:03 PM  
Blogger ghchua said...

There had been news that they are trying to sell the auto business of WBL and had in fact received some bids from interested parties. Also, there had been also news that they are going to dispose stakes in M-Flex and MFS. However, we should be patient to see what they will do eventually with WBL and any clear strategies which I believe they will communicate with the public and shareholders.

9:29 PM  
Blogger Ben said...

Hi ghchua

Based on the current TIH price, it will be worthwhile to purchase from the open market rather than exercising the warrants.

Ben

11:09 PM  
Blogger ghchua said...

Hi Ben,

I guess what you said is correct, but TIH warrants do still have some time value as there is still a second exercise price to go when the first one lapse.

11:01 PM  

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A self-directed investor, looking to invest for retirement needs and bypass all those expensive financial planners/insurance agents. Investing is fun, profitable or most important of all, knowledge gained is useful for the rest of your life!

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