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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

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To: marcos who wrote (13176)6/12/2006 9:10:10 AM
From: tyc:>  Read Replies (1) of 78420
 
FWIW.

>>"..don't want them when things are sliding off, or even slowing down for a breather".

Perhaps even in these circumstances warrants are more desirable than common stock.

Why should one be dismayed when warrants expire "out-of-the-money"? After all, they simply gave you the right to buy the stock at the strike price. If they expire worthless, it is only because one can now buy the stock for LESS than the strike price.

I see warrants in a portfolio as equivalent to a convertible debenture, where you have to surrender the debenture (a % of a diversified portfolio) to acquire the stock, and in the meantime the debenture (or % of the portfolio) is earning a return.

(Of course, like everyone else, I overload in warrants seeking extra leverage. But that's my fault !)
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