SAIC CWB1 will enter value return channel investors should be wary of warrants investment risk

SAIC CWB1 will enter the right period from December 31, 2009 to January 7, 2010. Near the right period, warrants will enter the value of the return channel, the time value will be quickly consumed, the price will rapidly close to its intrinsic value.　　For warrants, the intrinsic value of the formula is generally corresponding to the price of the positive shares minus the right price, if the stock price is lower than the right price, then the intrinsic value of 0. Warrants enter the value of the return channel, the absolute price of warrants will be relatively low, often attract a lot of speculative funds into the speculation, so that warrants price fluctuations, or even far higher than its intrinsic value. And many investors because of the lack of awareness of the risk of warrants in the profiteering effect attracted participation in the Doomsday warrants hype, often in the doom after the collapse of the warrants.　　Therefore, close to the right period, investors need to clearly recognize the huge risk of investment warrants. Take green beer CWB1 as an example: the starting date of its right of entry is October 13, 2009; September 15, 2009, Green Beer CWB1 closed at 6.00 yuan/A, September 30, the right of the first 2 trading days, green beer CWB1 transaction value is closed at 2.02 yuan/share, compared to September 15 has plunged 66.33　　%: October 12, the last trading day of green beer CWB1, its transaction price closed at 0.75 yuan/share, only 1 transactions that have a 62.87% decline. The above vapor CWB1 for example: the proportion of its right to 1:1, the right to the price of 26.91 yuan/share, the corresponding shares of Shanghai automobile December 24, 2009 and 25th closing prices of 26.99 Yuan/shares and 26.90 yuan/share, then SAIC CWB1 corresponding intrinsic value of 0.08 yuan/and 0 yuan/share , and SAIC CWB1 trading prices were closed at 2.94 yuan/A and 2.25 yuan/share, thus calculating the corresponding time value of SAIC CWB1 to 2.86 Yuan/A and 2.25 yuan/share. The time value of the warrants reflects the additional benefits to the warrants investors from the purchase date to the right period when the stock price may rise. And at this time of the CWB1 of SAIC's right to start date December 31 only 3 trading days, if Shanghai Auto's share price can not be increased by 2.86 yuan/share or 2.33 yuan/　　Shares above, then in the two days to buy SAIC CWB1 investors will face great investment risk, if the right period of Shanghai auto stock shares below 26.91 yuan/share, then with the expiration of the warrants, investors will be invested in the total loss of the warrants. Therefore, for the doomsday warrants, investors need to pay full attention to these risks, so as to avoid loss in the process of return of the warrant price, for the price of foreign warrants and the evaluation of warrants, that is, the intrinsic value of the warrants 0, more attention needs.