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


To: tyc:> who wrote (41168)5/27/2007 2:17:34 PM
From: Metacomet  Read Replies (4) | Respond to of 78422
 
Actually, this is what koan said:

"YOu can never make a blanket statement wts should generate a 2 to 1 leveraage"

My problem with the ratioanale regarding the relative potential of the EPM b and EPM a warrants is the application of a formulaic valuation method.

Just as I have a hard time divining how a TA investor can determine what a stock will do just by looking at a graph, I can't see how the 1 year time difference between the a & b's lend themselves to a pricing exercise independent of the underlying stock.

If EPM is able to execute their mine plan, I would expect substantial cap growth in the year between the expiration of the a's and the b's.

I'll continue to cough up a few cents more per warrant to access the potential of that added year.