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Non-Tech : Tarp Warrants

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From: kdm19579/21/2012 10:04:53 PM
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If you perform Google searches on "TARP Warrants", you'll find some interesting opinions out there. While a number of TARP-related warrants lack leverage, there are plenty that have long lifetimes and the possibility of excellent returns. AIG warrants (AIG.WS) have come back strong from their 52-week lows. Ditto for Capital One Financial (COF.WS). The ones I look closer at are the beaten-up warrants like Valley National Bancorp (VLY.WS for the warrants; plus there is another warrant that publicly trades, under the VLYWW symbol; different terms for each), where the share price needs to rise significantly to reach the strike price, but the warrant price might offer excellent leverage. Wide bid/ask prices for both of the VLY warrants, from what I'm seeing, so I'm a little wary of testing the waters at present. I keep an eye on the TARP warrants, of which there are dozens out there, but I'm not holding any at present.
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