One Shot For Good?

Have you ever seen retail investor hit a warrant with his 1 month salary and then he does not has to work for almost 3 years?

May be it is possible, if you managed to get SUMATEC-WA. It has closed it's price with upside of 3400% today. 

Let's assumed that you have been distributed with 500,000 units (500 lots) of SUMATEC-WA at 0.5 cent earlier. And you sold the 500 lots at 17.5 cents today, with the total sum of RM87,500. You earned a total sum of RM85,000. If your monthly salary is RM2,500, it provides you 34 months salary in just one day.

Yes, this kind of extreme return does happen in KLSE stock market. I still remembered previous 1st day warrants also gave similar return, like GUANCHG-WA and PJDEV-WC. If this is the case, shouldn't the retail investors just aim for this kind of opportunity rather than spend many years to go in and out of the market? The return over the years may not equivalent to only one shot like this.

If it is speculators with lots of bullets, perhaps it is encouraging and easy. How about those with limited bullets? Do you dare?

I'm not sure. If this is so-called an opportunity, most of the speculators should become billionaire or at least millionaire already. No doubt, thanks to the speculators' action that promote the 1st day warrant price to few hundreds or even few thousands percent and you have to believe that there are still buyers around. 

The warrant is suppose to be given for free to reward the investors for holding the mother share. But somehow it has becomes a trend that people like to fry it like no tomorrow. That's totally segregated from the company's fundamental. How scaring it is.

Okay. If this is the trend and it will continues, let's resign from our job and work full-time to concentrate and buy the company that will gives free warrant. We will be the next millionaire or multi-millionaires.

What do you think?

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