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 metal company Warrants

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Julian Augustus who wrote (261)8/7/2005 9:37:50 AM
From: tyc:>  Read Replies (2) of 681
 
Leverage + volatility;

In your warrant chart, the strike price of age.wt.u and the warrant price are shown in US dollars. Perhaps the current price of the common should also be shown in US$. It's currently US$13.08 (AEM).

This seems to offer good leverage for the warrant; (i.e if the stock price doubles to US$26.16, the intrinsic value of the warrant would be ($26.16 - $19=) $7.16,which is 4.6x its current price of $1.55). I wonder why your chart says it's over-priced ?

Your chart shows 24% as the Historic volatility of the common. However, this page shows recent (9-day) volatility increasing to 35%.

quote.barchart.com

The current surge in volatility could indicate a lively period ahead for this well leveraged warrant. We shall see !
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext