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Gold/Mining/Energy : Precious metal company Warrants

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To: tyc:> who wrote (667)2/1/2009 8:36:52 PM
From: LLCF  Read Replies (1) of 681
 
47c? What's trading @ .47 cents? I thought the stock was north of $2?

Normally what I expect to happen is the warrants won't move much with the first few bucks in the stock... assuming a $2 stock compared to it's warrant with a strike of say $10, $12, or $15. So you make a few bucks on the stock... and don't miss out on much of the warrant. Now one can notice the stock went from %2 to $7 let's say and the warrants went from .25 to $1.. so they "outperformed" because they were a 4 bagger and the stock wasn't (quite)... but as an "investment", the stock was (is IMHO) dirt cheap, and actually relatively low risk. Where the options are not... in fact, they may be expected to only double if the move to $7 takes a year say.

OTOH, the way this market is moving, it's hard to overpay for warrants I suppose!!

DAK
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