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

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To: LLCF who wrote (38208)4/13/2007 3:33:50 PM
From: koan  Read Replies (1) of 78409
 
DAK: "As we've mentioned repeatedly, leaverage in warrants is the consequence of their pricing, value, etc... it is not an attribute in itself... it is a result. There is no value attributed to the leverage in those warrants."

I agree, leverage is an attribute of the relationship of price of the stock to the wt price), not an intrinsic value (not to be confused with actual intrinsic value). But leverage is a way of valuing wts in relationship to time left and stock price and action, to strike price and is certainly a variable one uses to decide whether to buy or not.

I decided not to buy the CKG wts based on the fact there was only 2 to 1 leverage at the time they went public,

But you make a good point.
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