Disillusionment of warrants: Baosteel Warrant Vanke Warrant eventually becomes waste paper

summary:

For a whole year, if you are a person who has been holding Baosteel JTB1 Warrant investors will feel that they are riding on an elevator shuttling between heaven and hell. Great joy and great sorrow will accompany you at any time. In the end, it will fall into the flames of hell and never rise again.

With Baosteel JTB1 as the representative, all investors in China's securities market witnessed a vigorous live play, which created many "world's best", and let us witness the crazy speculation in the national character. The road of warrants continues. The death knell only rings for investors holding warrants that have become waste paper. The rest of us are still dreaming. With a set of commemorative articles, this magazine describes various forms related to warrant investment in a year, both for the purpose of establishing a record and for the purpose of not forgetting the past and the future.

Text magazine reporter Jiang Nan

Lu Hongda can be said to be the last "victims" of Baosteel JTB1 warrants.

August 23, 2006 was the last trading day of Baosteel JTB1 warrants. Baosteel JTB1, which was almost a waste paper, plummeted by 85.78%, with a turnover rate of 1164.77%, setting a record for the highest trading volume. It was on this day that Lu Hongda set a "world record".

"I am not the first time to buy and sell warrants, and I have been paying attention to warrants since the end of last year." In the face of an interview with reporters, he was still unwilling to admit that he lost because he did not understand warrants.

He said: "I have bought several warrants such as WISCO and Vanke before, but I have always backed Baosteel. I calculated the trend of Baosteel JTB1 carefully according to the wave theory. I think I know the trend of this product better, and I have also made money. I made a profit of more than 10000 on the whole, but this time I lost it all."

Lu Hongda made his move at the closing of the market on the afternoon of August 23, when he found that the price of Baosteel JTB1 plummeted very low, only a little more than 3 cents. "In fact, the price was lower that day, and then it rose a bit. We all know that warrants pay attention to the" trend ", and we can make profits as soon as we take advantage of the momentum. At that time, I saw only 3 cents, so I killed 60000 yuan to buy 2 million shares. If I keep the momentum up by two cents, I will sell out, and immediately make 40000 yuan, making 66.7% of the profit. Who would have thought... "he said sadly.

What he did not expect was that the "potential" he said did not bring Baosteel JTB1 to 5 cents, but directly brought it to the suspension. The next day, that is, Thursday, Lu Hongda did not see the transaction of Baosteel JTB1, so he quickly called a stock friend to ask him about it. Only then did he know that according to the Interim Measures of the Shanghai Stock Exchange for the Administration of Warrant Business, the last trading day of Baosteel JTB1 warrants was August 23, and the exercise day was August 30, which means that he had no chance to sell warrants anymore, and could only wait for luck to exercise.

However, it is almost impossible for Lu Hongda to exercise his power.

The exercise price of Baosteel JTB1 is 4.20 yuan, which means that investors holding warrants can buy G Baosteel from the company at a price of 4.20 yuan. With the cost of warrants of 3 cents, the principal of Baosteel's regular shares can only be guaranteed through the exercise of Lu Hongda when their shares rise to more than 4.23 yuan. But Baosteel has never touched 4.2 yuan these days, which means these warrants are useless.

In addition, even if the share price rises to more than 4.23 yuan, Lu Hongda is unlikely to exercise his rights. Because he has 2 million warrants in his hands, that is to say, old Lu has to spend more than 8 million yuan to buy 2 million shares Baosteel This is an impossible task for a retail investor.

"At ordinary times, I also rely on studying technology to speculate in stocks. I always think that the fundamentals are superfluous. As long as the forecast momentum is accurate, I can make money. I didn't expect to suffer such a big loss this time." Lu Hongda said, "Now when I think about the trust, I think I know warrants very well after making some money."