Wednesday, September 26, 2007
Bull vs Bear (26 Sept 2007)
Looks like the bulls are slowly increasing in numbers. The attention has shifted to local counters today as HK is closed for the mid autumn festival.
Since the market is hot, more CWs are issued, the latest are from CIMB: Petroch-C4, Chlife-C4, Resorts-CD and TM-CF. All are in the money and will be listed on 28 Sept. Watch out for Petroch-C4, really undervalue as Petroch has rallied quite a lot.
Talking about CWs, I prefer individual stocks CW than basket CWs because it is easier to compute the intrinsic value for the former as compared to the later. For instance, the basket CW ZA-OSKSB, I can't even remember what does the basket contains. To get the intrinsic value, one need to find out the value of the components and this cannot be down easily. No wonder the ZA-OSKSB is so thinly traded. Anyway, the latest basket coming out will be from CIMB that comes with some catchy name: 3 Treasures and Black Gold. The basket consists of counters from 3 countries name Malaysia, Hong Kong and Singapore. It is hard enough to monitor the basket from the same country, I don't know how can one monitor from 3 countries. I don't think it is worth the effort at all.