i'm not looking for "cheap" warrants, i'm looking for warrants with a good risk/reward ratio
in buying TNVAW, i paid .42 for the right to buy TNVA at 5 bucks for almost 3 years...since i like the looks of the deal, and the stock was trading at about 5.20, i paid 22 cents premium over the current price and limited my risk to 42 cents, vs buying the stock and laying out 5.20 a share, thus risking 5.20
this is excellent risk/reward IMHO, you would never get a deal like this on buying options on a potential growth company
if you were to buy PGRIW, you would pay .73 for the right to buy PGRI at 7 bucks for the next few years, but PGRI is trading at 7.09, so you are paying 64 cents in premium and risking 73 cents per share
as such, it would appear to me that TNVAW is a better "value" given equal deal quality, though i don't know much about PGRI's deal...i do know that they acquired another company which was already publicly traded, so perhaps they are finding hidden value that the market didn't recognize, i have no idea
finally, i would say that the fact that the parts of TNVAU now trade for more than the IPO price, whereas the parts of PGRIU trade for less, indicates that the market likes the TNVA deal better so far...time will tell if neither, one or both turn out to be winners
as always, this is all MHO, and your mileage may vary |
