New member to SI forum: I have 50,000 Franco Nevada B warrants with a US symbol FNGHF that expire
July 8, 2013. Strike price $64.27 . Today's share price of Franco Nevada FNV is $50.32 so the intrinsic value of the warrants is -$13.95 that's negative $13.95. The warrants are selling at $0.21. I paid $19,000 for the warrants and they are now valued at $11,000 give or take. Franco Nevada stock price would have to increase
27.7% over the next 11 months which doesn't seem too difficult--the stock price is up 33% YTD. I believe the
conversion is 6.5 warrants per share so 50,000 warrants would convert to 7,692 shares of Franco Nevada stock. The warrants look very attractive to me. Am I missing something..like why they are only valued at $0.21
per warrant |
