Now, the last 2 days we've witnessed the euphoric rise in Sunway-WB. This warrant has an exercise price of RM1.86 and expiring only in Oct 2024. Based on its current price of RM0.70 and share price of RM1.82, Sunway-WB is trading at a premium of 40.4%.
If my observation of past premium for construction groups holds true, the current price of Sunway-WB can only sustain if Sunway share price were to rally strongly & quickly. Otherwise the price of Sunway-WB will likely come down. If you have this warrant, it is advisable to take some profit soon.
Chart 1: Sunway-WB's intra-day chart as at Oct 11, 2017_10.45 (Source: Shareinvestor.com)
Chart 2: Sunway's daily chart as at Oct 11, 2017_10.45 (Source: Shareinvestor.com)
Thanks to a reader's comment, I like to update my post to amend an error in the exercise price.
- RM1.86 on and after Oct 4, 2017
- RM1.79 on and after Oct 4, 2018
- RM1.72 on and after Oct 4, 2019
- RM1.65 on and after Oct 4, 2020
- RM1.58 on and after Oct 4, 2021
- RM1.51 on and after Oct 4, 2022
- RM1.44 on and after Oct 4, 2023