Abb, the important thing to note for this share is that buyer need to have a strategy to trade (not invest) and know its nature. I trade with the money I think I can afford to lose. This type of share is very volatile and not meant for faint hearted.
I will wait for the day it delivers sudden big percentage gain.
My friend asked: "Shall I sell the warrants at 3 cents since the exercise prx is 10 cents = 13 cents. The mother share is only 9 cents."
My opinion is: "Buy the warrants! don't sell. If you have the mother share, you may want to sell, use the $ to buy the warrants!"
Reason is, that the price of 1 mother will give you 3 warrants. This is leverage. If the mother goes up over time, the warrant will rise faster percentage-wise.
The big risk is that the business doesn't do well, and the mother share goes further down from 9 cents. Then the warrants MAY go down. It depends on how much time left there is in the life of the warrants. If it's still 4 years, 3 years, even 2 years, the warrants will not be so vulnerable.
my comment -- The Korean regulators have a model that SGX / MAS should follow --ie, impose fines on the company and the chairman / CEO / CFO.
The Company would like to inform Shareholders that the Financial Supervisory Services of Korea (“FSS”), the Korean financial regulatory authority, has on 2 October 2013 released a press release (“Press Release”) in relation to the Company’s securities registration statement lodged with the FSS during the Company’s listing of its KDRs on the KRX in 2011 (“Korean Listing”).
In the Press Release, the FSS stated that the Company’s securities registration statement lodged with the FSS had:-
(i) exaggerated the Company’s cash and cash equivalents as at the time of its Korean Listing by over KRW100 billion (approximately S$116,300,000); and
(ii) omitted to disclose material facts relating to the Huaxiang Project.
The FSS has imposed a fine of KWR2 billion (approximately S$2,326,000) on the Company. In addition, the FSS has imposed fines of KRW50 million (approximately S$58,100) and KRW16 million (approximately S$18,600) respectively on Mr Cao Xiangbin and Mr Raymond Wong, who are, respectively, the former Executive Chairman and Chief Financial Officer of the Company as at the time of the Korean Listing. Furthermore, the FSS has referred the Company and Mr Cao Xiangbin to the Prosecution in Korea.
In connection with their role as inter alia underwriters for the Company’s Korean Listing, the FSS has also imposed a fine of KRW2 billion (approximately S$2,326,000) on each of Daewoo Securities and Hanhwa Securities for their failure to carry out proper due diligence on the
Company during the Korean Listing.
As of today, the Company has yet to receive from the FSS its formal notice with regard to the abovementioned FSS decisions. Under Korean laws, the Company will be entitled to file an administrative law suit within 90 days of the Company’s receipt of the aforesaid notice if it wishes
to challenge the aforesaid fine of KRW2 billion. In this regard, the Company will consult with its legal advisors and deliberate on its response to the FSS decisions, including whether to file the aforesaid administrative law suit.
