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

To: whenitgoesup who wrote (33868)	2/24/2007 1:38:23 PM
From: koan	Read Replies (2) \| Respond to of 78421

ALL ABOUT WARRANTS: I do not want people to think the RNG wts are a sure thing, or not dangerous, or that I am pushing them. I am just using my style and tryong to point out to my friends how useful they can be. I consider most here seasoned investors. I am speaking to the seasoned investor and people who want to learn. I would also tell people if they do buy RNG wts and do not understand wts, be careful and sell before the end of the year if they are not in the money, because you can still salvage some time and leverage value. If the stock does not move another penny by December you should still be able to get pretty much what they are worth here. This is one of the beauties of warrants is that while intrinsic value is absolute, time and leverage value is amorphous (becasue of speculation)and is more resiliant to price drops than intrinsic value. Let me provide a real present day example of what I am saying and the "free lunch" one can have. Go look at BWR stock and BWR wts. The strike for BWR is $1. Over the last few weeks there has been a .25 variation in price i.e. down, but the wts never fell more than a dime!! So while one enjoys a 2 to 1 leverage on the upside they also enjoy "reverse leverage" ( a term I just made up-lol) on the downside. Now tell me that isn't the clue of the century and something few people even understand and less mention. I have never seen a single person bring this concept up, but it is integral to why I use wts so much. WTS CAN BE SAFER THAN STOCK ON THE DOWNSIDE, ALL THE WHILE PROVIDING LEVERAGE ON THE UPSIDE! But first one has to understand exactly why wts do this and how it all works. Knowledge directed perception-lol.