HWGB -WB ----A PENNY STOCK LISTED IN BURSA KL EXCHANGE

HWGB’s principal activities are investment holding company and the provision of management services, manufacturing and trading of wires and cables, moulded power supply cord sets and cable assemblies for electrical and electronic devices and equipment, tin mining and  its related activities, producing magnesium ingots and supply for various metallurgical grade application. Also involved in travel agent and tour coaches charterer as well as provision of consultancy services to foreigners to reside in Malaysia.

HWGB placed out 78 million shares of its Hong Kong listed associate company CVM Minerals Limited at 36 cents (HK) per share in February.  HWGB used the proceeds to subscribe back the 78 million shares placed out via new issue of shares by CVM.  Even though HWGB still own the same number of shares after this exercise, its stake in CVM is cut to 35.71% from 41.25% previously.  As at 13th April, CVM’s market capitalization is about HK$790 million (RM326 million).

HWGB 35.71% stake in CVM is therefore valued at RM116.4 million, almost double the current HWGB market capitalization of RM62 million.

HWGB-WB

Warrant Price	:	RM0.070
Share Price	:	RM0.150
Exercise Price	:	RM0.200
Warrants Expiry Date	:	8/4/2015
Premium	:	80%
Gearing	:	2.1
Underlying Historical Volatility		55%
Warrant’s Implied Volatility	:	59%
Delta	:	0.72
Effective Gearing	:	1.5

HWGB-WB is trading at a premium of 80%. This is not low but considering that the share price of HWGB is down so much from when the rights issues was announced, such premium is warranted. The gearing of the warrant is about 2 times, which is not great but good enough for low price warrants.

The price chart for CVM HONG KONG IS :

  -----------------------The chart for  HWGB  is  as below:-

The HWGB-WB WERE ACTIVELY TRADED BETWEEN RM0.06-0.065  OVER THE PAST 3 WEEKS.

The management last Wednesday announced that by 2011 they can turn thiis company into a profitable Entity/ Enterprise with some direction in the Press Statements.

Their business model look very unique and probability of  ITS SUCCESS .IS  HIGH!!

Looking into its attractive low price for the WB of RM0.065 on the average, one may consider to 

BET for the eventual flying performance of this company like the good OLD Days.

Do remember that you have a long 5 years for its expiry. Note: The HWGB Old  Price  exceeded 

RM10.00 !, but imagine that NOW you may only just invest RM0.065-0.07 TO BET  for this Huge Return ?

A DREAM MAY COME TRUE !!