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whatsup
31-07-2009, 01:48 PM
IFTWC just has to be way over priced even as a long dated warrent , the hightest price that IFT has ever been is $3.13 price adjusted, some 2 years ago and the 29/ 06/2012 exercise price is $4.12 and for that priviledge investors are paying .065 per warrant, or am I missing something??!

sharer
31-07-2009, 02:17 PM
IFTWC just has to be way over priced even as a long dated warrent , the hightest price that IFT has ever been is $3.13 price adjusted, some 2 years ago and the 29/ 06/2012 exercise price is $4.12 and for that priviledge investors are paying .065 per warrant, or am I missing something??!

Nope. (here's still hoping).

winner69
31-07-2009, 02:39 PM
The WCs are priced about right ... with an implied volatility of 30%

Its the IFTWBs thta are interesting while they are trading at 6 cents. With a heads share price of 179 they are in the money and should have an intrinsic value 12 cents to which one could add say add 10 cent plus premium (adjusted for the cost of 55 cents doing nothing for the best part of the year)

In reply to your post i'd say WCs about right and the WBs underpriced ..... both about 6 cents doesn't make sense though

COLIN
31-07-2009, 10:47 PM
The WCs are priced about right ... with an implied volatility of 30%

Its the IFTWBs thta are interesting while they are trading at 6 cents. With a heads share price of 179 they are in the money and should have an intrinsic value 12 cents to which one could add say add 10 cent plus premium (adjusted for the cost of 55 cents doing nothing for the best part of the year)

In reply to your post i'd say WCs about right and the WBs underpriced ..... both about 6 cents doesn't make sense though

W69: I agree that the WB's are underpriced - even without any premium/opportunity cost considerations they should of course be at least 67c on today's 179 closing price for IFT(179 minus 112 to be paid next May).
As for the WC's, I am not an expert on options pricing theories but I have an innate reservation about the likelihood of the head shares reaching 412 by exercise date, given the prospect of only a slow climb out of the morass that the global economy has endured. However, I do hold a small quantity of the C's in addition to the 170k of B's that I partly paid up.

winner69
01-08-2009, 06:59 AM
W69: I agree that the WB's are underpriced - even without any premium/opportunity cost considerations they should of course be at least 67c on today's 179 closing price for IFT(179 minus 112 to be paid next May).
As for the WC's, I am not an expert on options pricing theories but I have an innate reservation about the likelihood of the head shares reaching 412 by exercise date, given the prospect of only a slow climb out of the morass that the global economy has endured. However, I do hold a small quantity of the C's in addition to the 170k of B's that I partly paid up.

As you know Colin option pricing is about mathematical probabalities and not fundamentals of the company - mathematics over subjectivity

The is a 'likelihood of the head shares reching 412' based on the volatility of the head share. That probability is less than 10% but there is a likelihood and thats why people are prepared to pay 6 cents today

on 'fundamentals' you obviously have a view 'the slow climb out of the morass....' will hold the heads back from recching 412 in 3 years and as such the likes of whatsup wouldn't bother take the chance of that happening

Colin I take it that you can exercise the WBs at anytime to get the 55 cents (plus more) back

COLIN
02-08-2009, 03:08 PM
Colin I take it that you can exercise the WBs at anytime to get the 55 cents (plus more) back

W69: The answer is yes; however I see myself holding these until the most propitious time to place them on the market.
My rationale for holding the warrants is simply that it provides an easy opportunity to leverage into what I consider will be a steady recovery in the IFT price; if I am prepared to back that view with $100k then I have two alternatives:
1. Buy 55,555 IFT at 180c, or
2. Hold 158,000 IFTWB .

If the IFT share price moves up to say $2.50 at any stage in the next 9 months then the above alternatives would give me the following profit outcomes:

1. $38,800 profit
2. $119,000 profit.

Seems a "no brainer" as the saying goes!

D B Cooper
17-02-2012, 02:01 AM
Anybody think IFT will lengthen the exercise period and or exercise price of these warrants given June 29 is fast approaching?. Especially as extra funding may be required to perhaps purchase shareholdings in coming Government privatisations?

The current price would indicate that they will lapse without any changes