Monday, June 14, 2010

Axiata-cc deeply undervalue with potential profit of 19%.

Currently, there are a few call warrants that i think are really worth a look and Axiata-cc is certainly one of them.

Axiata had just released a strong quarterly financial report on 27th May 2010. Axiata and Digi signed a memorandum of understanding (MoU) to explore long-term network and infrastructure collaboration in Malaysia. These are good news to Axiata and I expect more good news to come.

There are a few Axiata call warrants listed on KLSE and among them i like Axiata-cc the most. Currently, Axiata-cc comes with a discount of 4.5%, gearing 4.16 and expiry date 5/8/2010. It is currently trading at RM0.185. It means that Axiata-cc should up 19% or RM0.035 to finish up the discount and the fair value should be RM0.22.

Axiata-cc is an European styled call warrant therefore we can't exercise it now. In my humble opinion, when a call warrant is in discount territory the nearer it is to its expiry date the better it is.

Ok, good luck.

GOon
Read more: 'Axiata, DiGi network sharing to cut costs' http://www.btimes.com.my/Current_News/BTIMES/articles/20100611110005/Article/#ixzz0ql9ZDtyB

Axiata posts strong Q1 results
http://www.btimes.com.my/Current_News/BTIMES/articles/20100527203340/Article/

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