ShareJunction - Member Posts

x 0

If I remember correctly, the new notes has a condition that Kris Energy cannot pay dividend until the note is redeem. If this is the case, then no dividend for a long while.

x 0

I subscribed to my krisenergy note too.

I hope no need to wait for 7 yrs lar. The two 4% notes that are extended recently is trading at 96-97$ to $100. So it seems that mkt is expecting abt 5 to 6% yield per yr for Kris notes maturing in 7 yrs time.

If this is the case the note may be worth $0.67

Lets see.

alishan ( Date: 14-Jan-2017 12:24) Posted:

Nowadays it is rare to see passionate long term investors like you. 7 years is super long to hold a stock.

I normally avoid any counter that is in the mid of exercising warrants and so on at least after few months later, bcos I don' t understand how to price. I don' t like to know so complicated calculation. Boh bian, I am a simple person.

AndyLoss ( Date: 11-Jan-2017 00:14) Posted:

Thanks limahping that was very nice of you to explain.

I have taken the warrants and have also opted for excess rights - tottal worth 4000 - let' s see after 7 yrs :)

Thank you.

x 0

Hi

Yes, has to fork out cash to get the notes and the free warrant. Dead line is 16 Jan (Mon).

There is no option to sell the rights since it is non renouceable. You can sell the Kris Energy share and still entitled to subscribing the notes and warrant, but timing wise, the money cannot come in on time for 16 Jan already.

rogeryap ( Date: 10-Jan-2017 10:26) Posted:

So he has to fork out extra $3720 to get the notes and warrants? When is this payment to be made?if I dun have the extra cash to pay how? Better sell now? Once the notes start trading I suppose Mother share price will go down?

limahping ( Date: 10-Jan-2017 09:35) Posted:

Hi,

Allow me to share how I do the calculation. Using your cost as an example.

a) You have 40 lots bought at 0.22 Cum Offer

b) With this, you have the rights to buy 40 X 93 notes (ie 3720 notes) and get 33480 free warrant

c) So your total cost to get the following is $ 12520 (8800 + 3720 = 12520$) :

* 40,000 share of kris energy

* 3720 unit of notes

* 33,480 warrant

d) Some assumptions are needed for the notes and warrant :

* Note is worth $ 0.59 (ie. total worth of $ 2194 => about 9% interest pa for the seven years)

* Assume Warrant is wroth $ 0.12 then it will be worth $ 4017

e) So your cost for the 40,000 share of kris energy becomes (12520-4017-2194 = $ 6309)

f) Per share = $ 6309/40000 = 0.157

So you are effectively making money since Kris is trading now at 0.20 - 0.21.

x 0

Hi,

Allow me to share how I do the calculation. Using your cost as an example.

a) You have 40 lots bought at 0.22 Cum Offer

b) With this, you have the rights to buy 40 X 93 notes (ie 3720 notes) and get 33480 free warrant

c) So your total cost to get the following is $ 12520 (8800 + 3720 = 12520$) :

* 40,000 share of kris energy

* 3720 unit of notes

* 33,480 warrant

d) Some assumptions are needed for the notes and warrant :

* Note is worth $ 0.59 (ie. total worth of $ 2194 => about 9% interest pa for the seven years)

* Assume Warrant is wroth $ 0.12 then it will be worth $ 4017

e) So your cost for the 40,000 share of kris energy becomes (12520-4017-2194 = $ 6309)

f) Per share = $ 6309/40000 = 0.157

So you are effectively making money since Kris is trading now at 0.20 - 0.21.

rogeryap ( Date: 10-Jan-2017 00:15) Posted:

Actually this is very confusing, is there a number we can call to ask??

AndyLoss ( Date: 09-Jan-2017 23:57) Posted:

Sorry about this, I really cannot understand anything.

I have 40 Lots at 0.22 - so if I take warrants and notes - what will be my average price ? what is the formul to calculate :)

Do I need to take these in multiple of 100s, as sometimes we cannot sell the units in 10s ?

x 0

Hi Sheerluck,

But KrisEnergy is trading at ex-offer now. ie. even if the owner sells the share, they can still go and subscribe to the notes and warrant, so if any one want to sell at 0.21, they sould have sold and this will reflect in the share price already, right?

I will calculate the zero coupon note therotical price by :

(1) / (1.0x)^7

So if I need say 8% interest, then the therotical price will be (1)/(1.08)^7 = 1/1.71=$ 0.58. But no point calculating too hard, as there is no market to sell, even if we want to :)

sheerluck ( Date: 09-Jan-2017 14:55) Posted:

I would have included the total cost ie also the cost of the mother shares in the calc.

So using 1000 KRIS shares at say 20cts.

Shares 1000 cost $2000

Note 93 cost $93

Warrant 837 cost $0

So assuming one convert that 837 warrant to ordinary KRIS shares then they are effectively holding 1,837 shares and 93 notes costing them $293.

I have no idea how o price the note so starts with 0% interest assumption ie ntoe can be sold for $93 as well. Then the breakeven price for the 1,837, is 15.9cts assuming differences between ordinary shares and warant maintained at 11cts.

If higher interest rate implied a lower price for the note, then the breakeven price for that 1,837 shares needs to be raised to compensate for it.

So the arguement is there is actually quite a nice big gap to take profit for those who have bought the shares and subscribe to the note and warrant. So what is likely to happen when the note and warrant become active in the market. when people take the opp to take profit. Assuming you bought KRIS at 20cts, there is about a 30% profit margin to gain. For a market where oil price is still volatile which KRIS depends on, cashign out and taking profit might be the prefered way.

Well we will see will unfold leading to the note and warrant listing date and on the date itself.

limahping ( Date: 09-Jan-2017 11:08) Posted:

This post, a bit strange.

Just say one side of the story - No interest pay. Didnt say the other side - There is warrant given that is in the money.

Just a quick calculation :

a) For every 1000 share CO, it comes with the rights to buy 93 zero coupon note at $1 each

b) With it, it comes with 837 warrants at exercise price of $ 0.11

c) Current price is about $ 0.21, so the warrant is woth about $ 0.1 minimum. Probably can be worth $ 0.12.

So the 837 warrant is worth about $ 100.44 (0.12 * 837 = $ 100.44)

ie. if you come out with $ 93 you can sell the warrant and get back $ 100.44. And hold on to the notes (at no cost, since you arleady recovered the cost by selling the warrant) with the potential to give you back $ 93 in 7 years time

x 0

This post, a bit strange.

Just say one side of the story - No interest pay. Didnt say the other side - There is warrant given that is in the money.

Just a quick calculation :

a) For every 1000 share CO, it comes with the rights to buy 93 zero coupon note at $1 each

b) With it, it comes with 837 warrants at exercise price of $ 0.11

c) Current price is about $ 0.21, so the warrant is woth about $ 0.1 minimum. Probably can be worth $ 0.12.

So the 837 warrant is worth about $ 100.44 (0.12 * 837 = $ 100.44)

ie. if you come out with $ 93 you can sell the warrant and get back $ 100.44. And hold on to the notes (at no cost, since you arleady recovered the cost by selling the warrant) with the potential to give you back $ 93 in 7 years time

lovetoshare ( Date: 09-Jan-2017 08:54) Posted:

More ppl going to drown in this stock Zero coupon no interest paid , u received principal after seven long years

x 0

Hi,

1. Yes. The note (ie. lend money to Kris Energy) is at zero coupon (ie. zero interest). The note will be paid 7 years later, after all the existing Kris Energy loan at this point in time.

2. In return, the note purchaser gets huge number of warrant. Like you say 1000 Kris Energy Share (before XO), gets 93 notes and 837 free warrant. ie. If you have 1000 Kris Energy before XO, you have the rights to pay $ 93 and get 93 1$ note with no interest, payable in 7 years time and 837 warrant free

3. The warrant is going to be traded at SGX, based on Kris Energy current trading price (of $ 0.2), it is highly in the money, probably worth $ 0.1 - $ 0.12.

4. So if we use $ 0.12 X 837 = $ 100.4, the note is like " Free" . ie. you pay nothing with the chance to get $ 1 in 7 years time, if Kris do not kaput

Just sharing.

x 0

HI,

I am a small investor. Own some Kris Energy since the Cum Offer (CO) time.

According to the company web page, the zero coupon note (with free warrant) is supposed to be listed like on 13 Jan 17.

Todate, I have not received any document to subscribe for the zero coupon note. I went to SGX web site, also no picture no sound.

Any one know when the offer document will be available fro subscribtion?

Thanks.