Kim Loong mother price and warrant price are closed at 2.04 and 1.04 respectively. The warrant conversion price at RM1.00 which will be expired at 22/04/12. Kim Loong continue to benefit to the boom cycle of CPO which current CPO price exceeding RM2200.
Recommend to buy Kim Loong Warrant in the midst of CPO booming time.
Example: Capital gain of mother and warrant when investor buy at RM2.04 (mother share) and RM1.00 (warrant share) if Kim Loong mother share go up RM2.5.
At mother share price at RM2.50, the warrant price should be value at RM1.50. Therefore capital gain for mother share is = (2.5-2.04)/2.04 =>22.5% in mother share and = (1.5-1.04)/1.04 =>44% warrant price. Conclusion, investor who buy the warrant share stands to have more capital gain compare to buying mother share if Kim Loong price continue upward trend
Backgroud : Kim Loong Resources (KLR) is primarily involved in the cultivation of palm oil and cocoa, with 13,567 ha of plantation land in Malaysia. KLR is involved in the production of compost and biofertilizers and palm nutraceuticals. It is also in the midst of constructing a solvent extraction plant, which should be completed by 1QFY08.
