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

To: IOTA who wrote (6787)	2/18/2005 12:02:08 AM
From: koan	Read Replies (3) \| Respond to of 18308

Oldbird try this explanation: Forget dollar amounts, or share amounts or percentages. That really clouds the issue like quantum foam-lol. Think of buying just 1 share of bwr vs 1 wt. Say all you want to own is one share of BWR! If you buy one share it is .70. period. If you buy 1 wt you CONTROL 1 share at only .27. personally I would rather jsut pay .27-lol. Now if you watch the stock and wts over the next few weeks and the stock moves up, I think you will see the wts will move 1 for 1 with the stock. i.e. if the stock goes up .10 the wt will go up .10. and if the stock goes down the wt will go down less. If you buy 3 times as many wts it is like buying 3 times as much stock and that is jsut too confusing to get into-lol. So Think of it this way. If you only want to buy one share do you want to pay .70 or .27? What do you gain by buying the stock over the wt? Nothing. And still what will you lose on the downside. Possibly .70 if you buy the stock but only .27 with the wt. Now what I am saying is only true right now at this tiem and at these prices. Teh high for the year is .86 and the wt was .51 can you see how thte 3 to 1 ratio has collapsed to just 1.5. That is why the purchase needs to be made before the wts collapse down to a lower ratio. Now big companies usually will only buy stock for lots of reasons, like havign to watch it and the wt can lose time value, etc, etc. But if you beleive this stock is moving up over the next couple of years the wts are a better buy and less risky than the stock. Cheers NewsBlast Sign-Up StockHouse NewsBlast: Receive company sponsored news and information via email. « Previous Message Next Message » This message (Post #9171373) has been viewed 18 times Report a BullBoards Violation Ignore charles99 Post Reply View Threads Go to BullBoard: Symbol Company Name Search by Post ID: Related Links 3.0% APY American Dream Savings Account Check with them - Save with us. No fees. No minimums. Open your account online. 24/7 access. FDIC insured. Emigrant Savings Bank, since 1850 ... www.emigrant-direct.com ING DIRECT Pays a Great Rate on Savings Earn 2.35% annual percentage yield with no fees and no minimums and no need to change banks. Member FDIC. Open online in less than five minu ...