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Politics : Gold and Silver Stocks and Related Commentary -- Ignore unavailable to you. Want to Upgrade?

To: koan who wrote (6762)	2/17/2005 7:10:42 PM
From: loantech	Respond to of 18308

Koan you ol' pumper! <ggggggggggggggggggg>

To: koan who wrote (6762)	2/17/2005 7:48:38 PM
From: IOTA	Read Replies (1) \| Respond to of 18308

I don't follow your logic. Shouldn't we be talking in percentage terms? If the stock is at 70c and the warrant is at 27c, then the stock drops to half its value, ie 35c and you say that the warrant can only drop 27c. That maybe true but you have have lost 50% of your investment on the stock and 100% on the warrant. In your last paragraph you suggest that if the stock drops 20c to 50c ( not 55c as stated) then you suppose that the wt would still be worth 17c. In that case you have lost 29% on the stock and 37% on the warrant. I agree that you have positive leverage on the upside but you also have negative leverage on the down side.