Wilmar - how will newly listed call warrant perform if stock pushes toward Joey Choy's $4 "near-term trigger"?

Macquarie Warrants Singapore
05-07 11:26
  • Back on 7 April, we shared SGX Academy Trainer Joey Choy's write up on $Wilmar Intl(F34.SI)$ shares, where he stated that as long as prices hold above $3.60, Wilmar shares might push toward the psychological resistance level of $4

  • Joey believes that $4 is a key near-term trigger, which if broken, may push the stock toward the next resistance of $4.40

  • Since his article, Wilmar shares had dropped to a low of $3.43 on 30 April before closing just above the $.3.60 support level at $3.61 - and held above $3.60 since

  • While the article mentioned Wilmar call warrant $Wilmar MB eCW260630(ZFIW.SI)$ , Macquarie Warrants Singapore listed a new Wilmar call warrant $Wilmar MB eCW261130(NWVW.SI)$ yesterday

  • The new warrant expires at the end of November, allowing investors to have a longer holding period compared to the short-dated ZFIW which expires at the end of next month

  • According to the Warrant Calculator tool for NWVW, should Wilmar shares head 6.7% higher in the next 14 days, NWVW is estimated to climb 35.3% from SGD 0.017 today to SGD 0.023

  • Should Wilmar shares take a month to do so, the warrant is expected to increase less i.e. +29.4% to SGD 0.022 ​​​​​​​

  • The maximum holding period for this warrant based on the view that Wilmar shares would head to $4 is 71 days from now i.e. 17 July 2026 as the warrant will no longer generate higher returns than if one were to buy Wilmar shares and will in fact generate a negative return if an investor held onto the warrant until the end of July

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