SHS HOLDINGS W191216
For those holding the above company warrant, maybe it is time to consider converting them to shares. The record date for their upcoming dividend entitlement is as follows:
SHS HOLDINGS LTD. - 12 May 2016, 5pm. Final dividend 0.32cts per share, Special dividend 3.68cts per share.
Though the warrant expires on 16 DEC 2019, there seem to be no time value in it as it currently trades at around 7.6cts, with an exercise price of 20cts. Adding the exercise price to its current market price, it is still a bit lower than the current mother share market price.
The main reason I guess is because the warrant is currently deeply in the money, the time value of the warrant is almost zero. Which means, the intrinsic value of the warrant is simply market value of the warrant + exercise price.
For long term investors of SHS Holdings, I guess it is time to convert to lock in the dividends.
SHS HOLDINGS LTD. - 12 May 2016, 5pm. Final dividend 0.32cts per share, Special dividend 3.68cts per share.
Though the warrant expires on 16 DEC 2019, there seem to be no time value in it as it currently trades at around 7.6cts, with an exercise price of 20cts. Adding the exercise price to its current market price, it is still a bit lower than the current mother share market price.
The main reason I guess is because the warrant is currently deeply in the money, the time value of the warrant is almost zero. Which means, the intrinsic value of the warrant is simply market value of the warrant + exercise price.
For long term investors of SHS Holdings, I guess it is time to convert to lock in the dividends.
Labels: Warrants
posted by ghchua at 10:44 PM
4 Comments:
Hi GH,
I am impressed by your value investing skills and can remain as a full time investor. What are your secrets? I am also working hard to be one. How to start off?
Based on your portfolio i seen, it seems like a lot of cash is needed to be a full-time investor. Any advice?
You can reach me at jtinvestments2611@gmail.com
Regards
Terence
Hi Terence,
There is no secret. The usual habits like hardworking, read widely, save prudently etc applies.
Amount of cash to start full-time investing varies from one person to another. What is a lot to you might not be a lot to me and vice versa. It really depends on how much you are comfortable to start. Cash is not available for me just from nowhere. It requires a prudent effort to save and invest every month when I was working before I became a full-time investor. Of course, when you are young, you should not be trying to become a full-time investor. But rather, try to work hard, save more, invest and slowly build up your nest egg. When you are confident of your results as a part-time investor after working for quite a number of years and you have accumulated a decent amount, then you can consider embarking it full-time. But do remember that you have to consider the pros and cons before making a decision. Not everyone can get by with no fixed salary and CPF contribution every month.
Good luck and all the best to your investing journey!
Hi GH,
How long have you been a full-time investor? I notice that the stocks that you owned from the singapore market are not very active stocks. Are you buying them for dividend play or?
I hope that one day can meet you in person to share your investment philosophy with me.
Many thanks.
Regards
Terence
Hi Terence,
I have been a full-time investor for around 5 years.
Yes. Some of those stocks I bought might not be active stocks and I bought mostly for value, not only for dividends. I must admit that the trading volume for some of these stocks are very low, which means there is opportunity since the market might not realize its potential yet. Given time and with the right catalyst, I believe that their value will be realized by the market.
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