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To: LLCF who wrote (38343)4/16/2007 11:50:42 AM
From: Mario :-)  Read Replies (1) | Respond to of 78409
 
< Et tu Brute??? Et tu? >

ROTF!

But serious; say you have (almost) no clue about warrants. But you did DD on underlying stock. Say, you are pretty sure about PS will at least double from here. You are so sure that you are willing to put some money into the stock.

You don't know, how to calculate value of warrant. But you know, that there are 3 or 4 years left 'til expiration. And there is leverage. (example may be EPM.TO)

Ah, and of course, one more requirement - can't hurt if you are doing this in a bull market.

Why not putting money (also) in the warrant and try to gain more with leverage, if you are already so sure about stock? Regardless how much you know the warrants...

Now, if you are wrong about stock, you will lose more and faster, yes, but on average and long run, with good DD, you should be way ahead. Not arguing, just asking, since this is what I'm occasionally doing.