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

To: Tommaso who wrote (18554)	8/29/2003 12:30:32 AM
From: LLCF	Read Replies (1) \| Respond to of 39344

<There was a lot of excited speculation on the Wheaton warrants for much of the past year that pushed them well beyond a reasonable price.> I've only been watching since earlier this year... so I can't comment on "the past year"... but they certainly have NOT traded "beyond a reasonable price" at any time this year based on any accepted warrant valuation models. Period. <How can you accuse me of deceptive "hindsight" when I am only pointing out what I said earlier?> You weren't pointing out what you said earier... you said: <The cheapest you could buy the warrant six months ago was about 50 cents Canadian; so at 94 cents it has not quite doubled. The same is true of the share price itself--it has not quite doubled from its low of six months or so ago. But at that time it made more sense just to buy the stock, since it had no expiration date.> In fact, your entire analysis earlier was based on what would happen at expiration, which isn't anywhere on the horizon. AND you fail to recognize THE WHOLE POINT behind and option/warrant/insurance... that is the potential 'gap' that normally doesn't occur, but which could. Your rational behind stating that the warrants were a crappy buy is that you can now by them cheaper and sell your stock. 1.) you never stated that before 2.) That is something that one can do with options MOST OF THE TIME... but that ONE TIME you can't there has been a huge move, and the warrant holders are the big winners. Again, I recommend getting a good book on options. <As you see, when the relative valuations change, I change my views about what the best course of action is.> Good idea. <I think you would be happier if I just went on denouncing the warrants> No, because that's not my point at all... I continue pointing out the proper way to look at options/warrants. <but I do not see that I have any special responsibilty to assure your felicity.> Of course not... nor I yours. DAK