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 : Precious and Base Metal Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Tommaso who wrote (11268)5/21/2003 12:34:50 PM
From: LLCF  Read Replies (2) of 39344
 
FWIW, I'm using the standard accepted valuation method on WS, so of course you just take it as my opinion.

Now a couple of your points are off:

<<So if you are SURE that WHT is going to double, and you can get the warrant currently for 35 cents, it is a good buy.>

The whole reason for the "premium" in an option [as in insurance premium] is to protect your downside. You also lose less than 1/2 should the company go under. It is generally accepted to look at the full expected value... not just upside.

So while your "expiration day" analysis is correct and useful it does miss the added dimension of options or warrants. If you aren't concerned about the downside or think that limited loss 'insurance' is worthless, then you would almost never buy a warrant or option.

< They don't have a "strike" price. The conversion premium is $1.65 Canadian>

I'm using option lingo, these are the same.

<or unless the Canadian dollar drops back dramatically in value. >

This part is backward... the warrants on the AMEX will rally as the Canadian dollar RALLIES not sells off. If the Loonie goes to par with the ClownBuck tomorrow ceteris paribus, the Amex Warrants [.40] will rally to equal the Toronto price [.55?].

DAK
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News