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Gold/Mining/Energy : Canadian Warrants Only
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To: PaperPerson who wrote (3664)4/5/2008 12:23:31 PM
From: koan  Read Replies (1) of 23089
 
To provide some perspective on NGD A wts, price 7.50 and strike of $15 with 9 years to go.

In 1987 I bought Pegasus wts for essentially $1.50 (5 for 1 .30). The stock was $12 and the strike was $14.57. The price then dipped down to $6 (but wts held up pretty well even though they were just 3 year wts) and then gold rose and the stock went to $35 and the wts went to $5.

Here is the magic of wts. Free insurance and leverage. With 9 years left, for many years the wts for all practical purposes will lose no time value and should stay close to the $1.75 or higher now offered.

Note the wt page has them as undervalued with real value being $3.50.

And if something happens to drive gold to $2,000 the stock should blow right through $15 and go to $50+? and the wts will scream on the upside.

Pretty safe way to play gold over the long term.
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