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

To: Tommaso who wrote (17494)	8/21/2003 1:31:22 PM
From: TheBusDriver	Read Replies (1) \| Respond to of 39344

<<Why would anyone want to pay a dollar for the right to spend an additional $1.65>> Yea, but what about, say 2 years from now, when the stock is $5 or more? Now the warrants you bought at $1 look pretty smart. It is not the current price that is so important but the price between now and when the warrants expire. Wayne

To: Tommaso who wrote (17494)	8/21/2003 1:34:30 PM
From: re3	Read Replies (1) \| Respond to of 39344

<<<Why would anyone want to pay a dollar for the right to spend an additional $1.65, making a total of $2.65, for a stock currently selling for $2.04? um, because you can currently get more warrants than shares with the same $ amount invested...if the stock moonshots between now and expiration date in '07, you'd make a lot more with the warrants...

To: Tommaso who wrote (17494)	8/21/2003 1:57:09 PM
From: Claude Cormier	Respond to of 39344

A strike price and the exercise price are basically the same thing. <Why would anyone want to pay a dollar for the right to spend an additional $1.65, making a total of $2.65, for a stock currently selling for $2.04?> Nobody would do that. But by buying the warrants at $0.81, you limit your cash outlays to 40% of the stock price and obtain almost same leverage. That is why one would buy the warrants. If this is a bull market and gold is going to $500 or $1000. Buy 10000 warrants is much smarter than buying 4000 shares for the smae cash outlay.