The Gambit-YTL Power Warrants

Fair Distribution?

Did we play to lose in subscribing for the 20 sen YTLP warrants(YTLPW)?

I subscribed plenty and came out absolutely below average.

End result-I procured only 4.5 %.

Let us look at the gambit.

In chess, it means sacrificing some pieces to gain an advantage.

So my gambit consisted of the following:

4 bank-drafts at RM 5 each to total RM 20.00.

Revenue stamps-RM 20.00

Bus-fare of RM 1.90 to Tricor at the Gardens North Tower

As such gambit cost amounts to RM 41.90.

Power Failure

Now, let us look at the returns.

My son only got 400 units-very poor returns.

Sold at RM 0.42 sen and netted RM 138.94 after deducting overheads of RM 29.06.

Subscription was RM 80.00. Revenue Stamp took RM 10 and 2 bank drafts at RM 10.00

As such, net returns is RM 138.94 - RM 100.

So, the slim gain was RM 38.94.

Puny Returns

Compared to the gambit of  RM 20.00, actual returns for the risk taking is a return of 94.7%.

Now for my incursion.

Got 2,300 units. sold all at RM 0.42. Net returns of RM 936.71 after overheads of RM 29.29.

Subscription was RM 460.00. Revenue Stamp took RM 10 and 2 bank drafts at RM 10.00 and transportation of RM 1.90. This totals up to  RM 481.90.

So deducting for gambits, net return is RM 936.71-RM 481.90=RM 454.81

This may sound not too bad.

Return to gambit of RM 21.90, will be more than 2,200%

Between my son and me, we netted  RM 493.75.

Not even RM 500.00!

Good deal in percentage terms; but in absolute gains, puny!

So much for trying to play pucks with the market!