At 94 cents now, Technics is not a bargain stock if you go by its PE valuation now.
At 37 cents, the warrants, by some curious twist, are a bargain compared to the mother shares.
The exercise price is 40 cents, so you pay 40 + 37 = 77 cents when you exercise them. Much cheaper than buying the mother shares.
However, holders of the mother shares are going to collect 10.5 cents dividends (already declared but the dates for cd and xd have not been announced yet).
The mother shares could rise further when the TDR date of Technics is fixed, and post-listing the Taiwanese investors are supposed to push the TDR price up some more, thank you.
Assuming that happens, buying the warrants now seems attractive as they offer not only a discount to the mother share but a leveraged play on a rising stock (caveat emptor!!!!)
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