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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?


To: koan who wrote (19005)8/23/2006 6:35:05 PM
From: SwampDogg  Read Replies (3) | Respond to of 78413
 
Another short dated warrant that looked cheap

stockcharts.com

Silly way to look for leverage IMO

FWIW your 5-1 leverage has been 2-1 leverage over the past couple of months. Not as good as margin and no liquidity.



To: koan who wrote (19005)8/24/2006 3:02:42 PM
From: Taikun  Read Replies (2) | Respond to of 78413
 
K.WT is excellent leverage, not to mention one of the highest (12yr) RLIs of major producers.

Yesterday K.TO was $15.47 and the warrants $1.16, strike $15 so 71 cents for 16 months time.

Those are really undervalued. Should be $3.17 if they were options.

I used the calculator at www.ivolatility.com

Price=US$13.48
Strike $13.51 (C$15/1.11 exchange rate)
Ticker KGC
Days to warrant expriry = 470 (Dec 5, 2007)

The call is US$3.17 in value for 100 shares or US$1.06 per 1:3 ratio, or C$1.17, so they seem approx correctly priced at C$1.20 today.