KNM

List of Local Call Warrants and its Maturity Date, Exercise Price & Ratio


warrant

Previously we look at Warrants, there are another type of warrants traded in Bursa Malaysia. We call it Call Warrants. Below are short brief explanation about Call Warrants.

Call Warrants give a right, but not an obligation, to buy a fixed number of stock shares at a specified price within a limited period of time. But unlike warrants, call warrants are issued by third parties based on existing stock shares. Therefore, they do not increase the issued capital or dilute the earnings of the company as a warrant do. Call warrants have maturity dates of not more than two (2) years

The table below shows Local Call Warrants that currently traded in Bursa Malaysia together with its maturity dates and exercise price as of 10th August 2010.

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Stock Picks – Oil & Gas Sector – June 2010


oil and gas

2H10 would be an exciting period for the O&G industry, especially in 4QCY10, during which we expect most of the contract to be awarded, alongside the listing of MMHE, which may lead to a re-rating of the share prices of most O&G companies, which are currently trading at single digit PER valuations.

However, we do not expect to see strong quarterly performance by most O&G companies in 2H10 and would not be surprised if they reported results that are below our and the industry expectations as there was a stark shortage of new contracts late last year and in 1H10. This led to poor utilization rates and margin compression as a result of strong market competition.

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