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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (11260)	5/21/2003 11:57:25 AM
From: marcos	Read Replies (1) \| Respond to of 39344

wrm.wt - strike 1.65, expiry 30.05.07 wrm.wt.a - strike 1.65, expiry 30.05.07 Same in every way, but they don't trade in sync yet, at the moment the dot A model has its bid four cents lower, and its offer five cents lower ..... go figure eh .... people not watching, i guess .... there was at one point a dime difference between them, over days, peaking to eleven or twelve cents at times One thing was happening, they say, is people shorting the common and hedging with the warrants ... there's such a weight of fresh paper out on Wheaton, of which those warrants are a part .... at the moment i hold less warrants than common, wondering if maybe that hedging might get unwound some [edit] - from Greenspan's speech - '"Should it turn out that, for reasons which we don't expect, but we certainly are concerned may happen, the pressures on the short-term markets drive the federal funds rate down close to zero, that does not mean that the Federal Reserve is out of business on the issue of further easing and expansion of the monetary base.' ca.us.biz.yahoo.com ... heh heh .... a shortage of fiat money, you say? ... ah, just watch what happens when i pull this lever here

To: LLCF who wrote (11260)	5/21/2003 12:14:02 PM
From: Tommaso	Read Replies (1) \| Respond to of 39344

I don't have to remember off the top of my head because I was stupid enough to buy some of the WHT warrants and still hold them. They don't have a "strike" price. The conversion premium is $1.65 Canadian, or currently $1.22 $US. So you cash in your warrant, you pay $1.22, and you get a share of WHT currently valued at $1.00, only losing 22 cents per share in the process, plus whatever you paid for the warrant, about 35 cents currently, so you lose a total of 57 cents per share. Now if you buy WHT at$1.00 (US) and it doubles, you double your money. If you buy the warrant at, say a current price of about 35 cents, and WHT goes to $2.00, you can buy one share of WHT of WHT for US $1.22 (provided the loonie does not rise any more). That means you pay $1.57 for something worth $2.00, giving you a profit of 43 cents, so that you have a profit of 122 % instead of 100% by owning the warrant instead of the stock. So if you are SURE that WHT is going to double, and you can get the warrant currently for 35 cents, it is a good buy. If you are holding warrants bought at 40 cents or more, however, you are not going to make as much money on WHT as you would if you simply held the stock, unless the stock MORE than doubles or unless the Canadian dollar drops back dramatically in value. And anyone who bought the warrants at 60 cents is just an outright loser, unless the stock triples, in which case you would double your money, more or less, while the holder of the stock itself would triple his or her money. Now suppose the stock increases fivefold. Then my warrants, currently worth about 35 cents, would be worth maybe $3.80, or about ten times their current value. At last we are really talking big gains as compared to the stock. So I heartily recommend the WHT warrants to anyone who knows for sure that the stock will be worth five times what it is now before the warrants expire in 2007.