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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers
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To: LLCF who wrote (38284)4/15/2007 4:39:11 PM
From: E. Charters  Read Replies (2) of 78409
 
Well, potential value is the only way we evaluate stock buys, as no one in their right mind buys a stock if the price today is exactly what it is (or ever will be) worth. I admit you might sell it if you thot that..

All the methods of evaluation of a stock that are considered fundamental point to and try to estimate growth potential.

So, yes, value versus bid price is an accepted concept to finance. It is called market discount. It is true however that Koan has not provided us with a brass instrument way of assessing that 'intangible'. But given that there is some way of assessing the likelihood of a move (past volatility, sector stability, demand of underlying product) then the improved leverage of a warrant given the possibility of that move is something to look at. Evidently Ed Thorpe thought so, and he has forgotten more math since yesterday than you and I and your dog will ever know. And no, he is not senile. Nor are we stupid. And yes, I am admitting calculation pretends to refine witchcraft..

In fact the Black-Scholes method of evaluating 'fair value of an option' is based in part on the hocus pocus that past value predicts or infers future.. otherwise why put in the volatility index ..? isn't that what the statistical experts tell us is the sort of thinking that will lead us down the garden path in Las Vegas?

Having said that I still aver that waves and wave analysis tells us that randomness even in nature is only an illusion... keep your ties, they always come back in style. (Chet Atkins)

So who do you like at the Hialeah in the seventh?

Here is to the inefficient market and all the corners thereof. Pash me another glass of mead, I have to do an augury and exorcism for a Sprott report.. do you think John Kaiser has much of this Consolidated Gopher Guts and Gold..? they are in China you know.. Gotta go places..

EC<:-}
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