SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: onepath who wrote (31527)2/1/2007 1:06:33 PM
From: tyc:>  Read Replies (3) of 78426
 
The beauty of RNG.wts as I see them is the leverage offered. As a measure of that, I offer; "If the stock doubles (2x) to C$7, the intrinsic value of the warrant would be C$2, which is 4x its present price.". That leverage should apply from here on up. If you know any warrants offering better leverage, could you let us know ?

Someone asked, "When should I sell warrants ?". Perhaps that too is worthy of discussion. It seems to me one buys warrants only because of the leverage. If the leverage isn't there one might as well hold the stock. For me, i would look for leverage of at least 3x calculated as above. e.g. If BWR doubles to C$3.50, the warrants would have intrinsic value of $2.50, only 2.5x their present price. Of course that doesn't mean that BWR is not a good stock. Any different ideas ?
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext