no silver warrants at the moment, although i would be tempted this summer to look into them if we get a heavy duty pullback, which is quite possible.
in general i will be trimming back, taking profits here while keeping some skin in the game, with the idea of seeing how things look in august and september and reserving specualtive cash for then. i can afford to back off for the summer.
in august, one i would certainly look at would be the farthest out call options on SLV. currently that is january 2013. they come in a variety of in and out of the money sizes.
for now, the silver juniors are so cheap they seem like the best bet to me. i have done real well with INM and with USA.
i am not going into a warrant just for the sake of being in a warrant. USA has great leverage of its own on the price of silver, for example. so does INM. so does Kootenay Gold. and they dont have time limits.
as for whether somebody should enter anew into claude warrants, i am uncomfortable saying yes or no!
it is my largest holding and it is thinly traded.
also, if i bought more i would be averaging up, so i would be facing less risk than somebody coming in for their first warrants north of 1.25.
that said, i still DO think the warrants are a good deal, that they will stay in the money and expire in the money.
i woudl not be holding the load that i do if i didnt thnk they had quite a bit of additional potential.
Another claude point: i would NOT recommend buying them with the idea of trading them.
they are very thinly traded. the bid ask spread is huge sometimes. There are days even now when none change hands, or maybe one or two transactions all day.
they can be very illiquid. they could start showing their illiquidity during the dog days of summer, which are rapidly approaching!@
for those who do not know, these are the claude resources warrants. they trade on the toronto. each warrant entitles the owner to buy one share of CRJ.TO at c1.60 and they are good until spring 2013.
with the stock at 2.40 they have an intrinsic value of 80 cents. the rest, say 50 cents if they are selling at 1.30, is speculative value, that the leverage they give you on the common will be worth more than 50 cents by the time they run out. |
