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Gold/Mining/Energy : Uranium Stocks -- Ignore unavailable to you. Want to Upgrade?


To: Kpainfish who wrote (3439)10/24/2006 12:19:28 AM
From: Mario :-)  Respond to of 30224
 
< Why does one buy warrants and how does one buy warrants and should one buy warrants especially if they don't know what they are doing (me)? >

Why: Because of leverage. If stock will go up say 30%, warrant may go 60, 80% or more... Ditto for other direction

How: shold be the same way as regular stocks. Ticker is a little different. But some brokers will not let you buy them (Interactive Brokers), or you have to call broker representative (Ameritrade)

Dont know what they are doing:

Generally, warrants are tougher because of leverage and expiration (yes warrants have expiration day as options)

Now, there is general recipe, but remember, just general:

Warrats can have few months of life to up to 5 years. You want those with some life still left in them, say at least three years.

So you did your DD on your mining company and you know it will go up 50% from here. It is no brainer. OK, if you are so sure, then buy (if warrant exist) warrant - with few years of life.

If stock will go up, warrant will go even higher. You will make bigger profit with the same investment. But, if stock will go down....

So you don't plan to exercise warrants one day, you are just looking for leveraged profit.

Now, this are just general guideline. There are formulas and calculations, how to figure out fair or under valued price of warrant...

More from someone else with more experience....

This links can't hurt:

canada.com

This one is even better (but outdated - I newer know, how to find current version, browse web page to find it, or someone else may post current link):

smartinvestment.ca

Check out these articles:

preciousmetalswarrants.com



To: Kpainfish who wrote (3439)10/24/2006 1:18:09 AM
From: siempre33  Read Replies (1) | Respond to of 30224
 
Uranium Participation Corporation Warrants....

Uranium Participation Corporation is an investment holding company which invests substantially all of its assets in uranium, either in the form of uranium oxide in concentrates ("U3O8") or uranium hexafluoride ("UF6"), with the primary investment objective of achieving appreciation in the value of its uranium holdings. The objective of the Corporation is to provide an investment alternative for investors interested in holding uranium.

Denison Mines Inc. is the manager of Uranium Participation Corporation.

Uranium Participation Corporation’s securities are listed and trade on the Toronto Stock Exchange. Its common shares trade under the symbol U. It has two series of warrants listed on the TSX: U.WT (exercise price $6.25; expiry May 10, 2007) and U.TW.A (exercise price $12; expiry September 14, 2008).

Net Asset Value currently estimated at 7.90....U.TO last quote 10.90, so shares trade at a premium to their underlying value...
uraniumparticipation.com

if you'd bought A warrants at lower prices, you'd already be sitting on hefty profits, with the option of buying U.TO shares @ 12.00 if they go much higher, or selling the warrants for a nice trade...