SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : Any Stock Warrants
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Richaaard who wrote (474)7/26/1998 8:10:00 PM
From: ken h  Read Replies (1) of 1916
 
Ah, well, buying the warrants on dips would be another story.

However, at current levels, it just doesn't make much sense to buy the warrants over the stock...if you're going to take the risk of buying a limited-lifetime equity over the common stock, you ought to receive superior leverage. If you can get in at .31, obviously the story changes.

I use the Black-Scholes equation (and another, more accurate method that factors in parameters like the call provision) as comparative devices. I compare the actual values to the predicted values and sort through 500 or so warrants accordingly. Jmarw is one of the few (less than 5%) of American warrants that actually trade below their Black-Scholes value.

Valuation methods are just another tool in the toolbag. I know from experience that over-reliance on mathematical methods can get you in a lot of trouble in the investing world. However, with the exception of batsw and jmarw, all the warrants in your list trade considerably below their Black-Scholes values...certainly no coincidence.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News