Anglo PLC TO SIMON

[#1]

Hi all feel free to reply. I waited and waited for anglo to drop when it did a couple of weeks ago i bought a call warrant at 30 cents went right up to 48 cents i know i should have sold.Now this same warrant is trading at 17 cents which seems wrong.It says its time decay is 100% but still has 50+ days to go, is this possible? Should i hang on for a few more days coz it looks like things are gonna turn back up again of should i take my losses. It not alot of cash but i would like to know what you guys all think. especially Simon Regards James

[SimonPB]

which warrant?

[#3]

AGLSBI

[#4]

Also have a question for the same warrant, why did it no go up last night when the share itself wnet and yet the same warrant from absa went up and have more or less the same decay time???

[Q2W]

Also seen that one not moving like AGLSBJ

[SimonPB]

time decay looks odd, will chat to the guys. As for not moving - not sure what you mean. Did it trade, what levels/time/etc. More importantly this warrants is below 20c and hence nasty and also below 10c so SB are bid only.

[#7]

I meant the warrant itself went down when it was updated last night and yet the share price went up or am i missing something here??? I know that it has to do with bid/sell but there were no orders yesterday

[SimonPB]

use the bid only.

[#9]

So does that mean that since it's bid @ 8c, it'll go down to that price even though the share went up?? Isn't the price matrix calculated according to the share price??

[SimonPB]

yes, but the 8c bid is the issuer and as such the fair value.

[#11]

Hi Simon, excuse my ignorance, there was no trade on the warrant yesterday and it went down even though its share price went up isn't it supposed to follow the underlying share price? Another question, I was looking at the price matrix for the warrant and it's bid is @ 19 and sell @ 20, does that mean it will go to those prices once it's updated later??

[SimonPB]

you mean the bid price went down? You're ignoring prices after 4.49pm?

[SimonPB]

AGLSBI, this is actually a basket warrant (after the unbundling of Mondi). So for the spot one doesn't use AGL. Rather use 100 AGL * 0.91 Plus 25 MDL and 10 MDP.

Question is how do we spot this, simple always check a matrix before buying and if the price in the market is wrong - find out why.

[#14]

even more confusing... :-(