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

To: LoneClone who wrote (73807)	9/7/2012 11:15:49 PM
From: onepath	1 Recommendation Respond to of 78417

Rough numbers from todays close of $9.92 and using volatility of 30% to 40% i get a price between $2.60 and $3.20. Current volatility is high because of US listing etc. but long term most of the royalties are less then 30% volatility. But often as you said first day is a dump or kept down for broker positioning(crosses etc.) I will not pay for high volatility so i need a price below $2.50. If not i hold my already trading ssl.wt & ssl.wt.a until a more opportune time to switch and there will be one.

To: LoneClone who wrote (73807)	9/8/2012 8:31:27 AM
From: tyc:>	Read Replies (2) \| Respond to of 78417

>>"where do we think the SSL B warrants will trade when they open for the first time on Monday? " Somewhere on SI I read the following: (could anyone provide a link ?) "I know how to calculate the fair value of warrants. You double the current price of the common stock, subtract from that the strike price, then divide by three" Double the current price is $19.4, Subtracting the $10 strike gives $9.40 and dividing that by three shows a fair value of $3.13. We shall see.! I have used that system to evaluate the warrant embedded and hidden in the new LSG convertible debenture. Twice the current price of the stock is $2.08. Subtracting the $1.40 strike reduces it to .68 and dividing that by three gives a fair value for the hidden warrant of .22c. NGD.wt.a: Double the stock price is $22.2. subtracting $15 and dividiing by three $2.40. At a current price of $3.17, the warrant doesn't provide enough leverage IMHO.