Is it better to buy the warrants than to buy the mother share? The warrant has an exercise price of 35 cents, so add that to the warrant price of 8 cents = 43 cents.
This is only 2 cents above the mother which is doing 41 cents.
A 5% premium but a very high leverage makes the warrants a more attractive play on Duty Free.
The warrants expire in 2016. Still so far away, yet the warrant premium is only 5% . Just a tip.
N I expect there will be a major corporate move ahead by Duty Free. All this buying is to mop up shares at a 'cheap' price (so far the upper limit is 41 cents in the buyback). Â The major move ahead will be more 'expensive' to the company, so might as well mop up now. this is just my educated guess based on the reasonable premise that it doesn't make sense for Duty Free to buy back so many shares and reducing liquidity. But it has done that, because ....? There must be a special purpose in doing so. The logical thing to do for us/me is to buy in along with the company!Â
divads27: You are right to a degree but not entirely so. DFI bought back shares again -- on 1 feb and 4 feb. YYou are correct in suggesting that the buyback is not sustainable but you didn't say 'at the same hectic pace as in January'. The huge buying of 11.59 m shares to date has mopped up a significant amout of liquidity. Even though it's just 1% of share capital, the liquidity has been affected because of the low free float in the first place. I kind of agree with Joes, etc who  think that there is more than meets the eye. In other words, the buyback has a larger purpose. I can only guess what it could be.  Â
2 weeks on, Duty Free has reached 45.5 cents. And it did so without share buyback by the company. It's a good sign, baby. People are accumulating. Don't know who, don't care who.
NextInsight
a hub for serious investors
