Warrants

I have been looking at saizen reit for some time due to fellow blogger AK and Momo :)
However I have yet to vest in the stock as I may be cash tied to buy 20 -30 lots.
After seeing momo bought a number, it gave me an idea to buy some too.

Its written as SaizenREIT W120602 :
W means warrant
120602 is the date

SAIZEN REIT W120602


Last Date/ Time to submit Subscription Notice 2 JUN 2012 05:00 PM
Listing Date 5 JUN 2009
Expiry Date 2 JUN 2012
Outstanding Balance 493,430,362
Price ($) as at 2010-04-01 0.075
High for the year ($) 0.095
Low for the year ($) 0.065
High for the month ($) 0.075
Low for the month ($) 0.070
Exercise Price SGD 0.09000
Underlying Stock SAIZEN REAL ESTATE INV TRUST
Underlying Stock Price ($) as at1 2010-04-01 0.165
Conversion Ratio 1 share(s) : 1 warrant(s)
Cash ($) 0.000
Premium/(Discount) (%) (Cash) -0.00
Premium/(Discount) (%) (Bonds)
Gearing (x) 2.20
Remarks

I realized that it may be a good way to leverage as I will have a fixed deposit maturing in a years time . Also it will be a safe move as if the company will to foreclose, only the price of the warrant rather than the foreclose price will be lost

Disadvantages will be we need to exercise the stock before execution date and not entitled to dividends.

However I have yet to check on the commission payable to broker on
buying the warrant
exercising the warrant