warrants issuer push hdr lower, am i right?, page-6

re: meerkat -warrants issuer push hdr lower, am i Hmnn
I agree mostly with the manipulation theory on standard warrants and it most definately happens with barrier warants which only have to trade one share at the strike price to be worthless they dont even have to wait to the expiry date to screw the punter.

I have to disagree with the hdrimo installment warrant ? If the issuer buys/holds the stock at the time they sell the installment warrant the time premium / profit is a given when they sell the warrant.

Add to that the profit on the spread when you sell them back the issuer cant lose.

HDRIMO currently has a buy price that you can sell back to the market maker that virtualy has no premium.

Its unlikely that Maccas can get the price below $1.60 before expiry and they dont need to because selling the warrant back to the market maker now and buying the underlying on market is the same as converting the warrant to a fully paid by paying the balance of the installment price eg $1.60.

ABN Amro have a another one hdrizz which expires 12 months from now its different again being a rolling installment warrant which has an interest component and a time premium but can be reset ( rolled over ) at expiry this presents a leveraged play similar to cfds.

So lets hope $1.76 proves to be the floor as the insto,s that bought the other 60m wpl shares dont wont to go underwater even if maccas would like to drop the price a little further .