I loaded 60 lots of Saizen REIT Warrants at 0.075 today. The expiry date is in 2012, but I may convert earlier than that.
The reason for buying warrants is because
1) It's cheap, and I have the option to convert or sell for capital gain as I deem it fit. And when I convert the warrants I have, it would represent an additional 351 JPY Mil for the management to play with, perhaps... help a little in the YK Shintoku loan...
2) Conversion price is at 0.09, which works out to 0.165 for mother share. It's a warrant without time value? Probably because the volume is too low.
3) I can buy immediately from the sell queue without queuing or waiting for 0.165 to come! I'm afraid of hitting only 1 or 2 lots and still need to pay the expensive brokerage.
In addition, Credit Suisse has become a substantial shareholder of Saizen, crossing 5% in holdings. Maybe I should feel safe that a big bank is buying into the same stock as me?
I look forward to the next financial statement by Saizen to see if there are any more updates on the YK Shintoku CMBS loan.