CIHLDG-WA (2828WA)

It was RM 0.04 (4 cents), before it took off on 28/7/2008.

What makes CIHLDG-WA sky rocketed from 4 cents to 13 cents within 2 days ? At the moment this article is being written, CIHLDG-WA marked 13 cents highest.

A 225% capital gain, if you manage to buy it at 4 cents and sold it at 13 cents. Let look at the Profile of CIHLDG-WA :

CIHLDG-WA
Expire Date     : 23/6/09
Exercise Price : RM 1.08
Ratio                : 1 for 1

In other words, if CIHLDG mother share goes above RM 1.08, the warrant is in the money.

Today, CIHLDG shot up to RM 1.18. Theoritically, the warrant, CIHLDG-WA has a value of RM 0.10 when CIHLDG hit RM 1.18 (Where RM 1.18 - RM 1.08 = RM 0.10).

This is the drive that pushes CIHLDG-WA today. Technically, CIHLDG-WA chart shows a bullish breakout.

But the problem being seen now is, there is a lack of buying interest of CIHLDG, the mother share in the afternoon session, where the buyer is RM 0.955 and seller is RM 1.00 (a price below RM 1.08).

Therefore, it will be a false bullish breakout, where CIHLDG-WA may not sustainable in such a scenario.