Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Koan and Ralph Emerson's Far Right and Far Left Whacked Out -- Ignore unavailable to you. Want to Upgrade?

To: russet who wrote (29)	3/3/2007 9:05:45 AM
From: tyc:>	Respond to of 103

Russet ! Take a look at the data on this URL. quote.barchart.com Its relationship to the common tells us it provides LOUSY leverage. Who wants to buy even a long term, deep o/m warrant when you can buy the common for .40c. However, as a stand-alone piece of paper it is intriguing. The recent historic volatility has been ~200%. And in the same period its price has fallen 30%-50% . Surely this suggests that gains of similar magnitude could be achieved on a turn around. Ascendant Copper is presenting at the PDAC I believe. (I recall seeing that Sprott (asset management?) holds a lot of the common). Caveat Emptor. DD required

To: russet who wrote (29)	3/3/2007 12:07:51 PM
From: tyc:>	Read Replies (1) \| Respond to of 103

Here's a little more academic discussion re ACX.wts. (Great idea this thread; just talk about anything you like !) When I enter price and strike data into my calculator (Strike $2.50, stock price .41c, wt price .09c). It tells me that the appropriate warrant delta is 29%. So the change in price of the warrant will be equal to 29% of a change in price of a common share. If the stock price doubles by increasing by .41c, the warrant price would increase by .12c (29% of .41c =). Significantly more than more than a double of course. Another way of looking at it is to say that leverage is 29% * .41/.09 =1.3x This says, if the price of the stock increases by 100% the price of the warrant will increase by 130%. 130% of .09c = a 12c increase. The point of all this is that those historic volatilities make such changes highly likely. Let me know if this is of interest please (I could write more. lol)