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Pastimes : Georgia Bard's Corner -- Ignore unavailable to you. Want to Upgrade?


To: Junkyardawg who wrote (2452)5/24/1998 11:08:00 AM
From: Ga Bard  Read Replies (2) | Respond to of 9440
 
Well first off I buy warrants but not heavily. I buy common and preferred.

Ex.

I buy 50 common I back it up with 50 warrants and depending on the preferred stock I buy an equal amount. This way when the stock wakes up they equalize. At a point I use the warrants to cover initial unless the stock turns into a solid NYSE potential at which time I exercise them.

Warrants are for those not sure they want to BTS, momentum, or go long... where the P is for the convinced long term investor and the common is for the growth capital investor.

Once the stock is defined the P are the ones that typically are the best investment because of dividends and so forth. The common is where growth investors go and the warrants suddenly become a major play.

Warrants:

1.) you can sell 20% of the warrants at a quad and exercise the other 80% (10000 w @ an AMSC .10 = $1,000.00 and you need $10,000.00 to exercise them if the exercise price is say $1.00. Sell 2000 w @ .40 and you get $8,000.00 and can exercise the remaining 8,000 warrants for common.)

2.) The warrants will double quicker that the common because of the reduced lagginf price. (Ex. Stock is trading at $1.50 then the warrant would be trading at .50 soon and if you bought at .10 you have a 5 out where the common is only a double to triple)

3.) Once the common starts rising the warrants will track accordingly and the higher the common goes the higher the warrants goes for an increase in equity so for the short term trader the warrants are a wonderful play.

Hope this helps and it is only my opinion

GB.



To: Junkyardawg who wrote (2452)5/24/1998 11:40:00 AM
From: Bad Bart  Read Replies (2) | Respond to of 9440
 
Lamar,

There is a thread for warrants....
under general/misc I believe...if your interested in
that aspect of trading

Bad Bart



To: Junkyardawg who wrote (2452)5/24/1998 11:51:00 AM
From: Kurt N  Respond to of 9440
 
Existing SI threads:

exchange2000.com
exchange2000.com

Warrant Websites
noddings.com
stockwarrants.com

One of the hardest thing with warrants is finding the terms of them, exercise price/expiration date/etc, which are the first things that you should know before buying it. If the price seems low there is usually a good reason for it.

The first website has a listing of the terms on most warrants which is where I look first. If not there I look thru SEC filings, and if still not there you can always the company.

If I want to buy WXYZ stock and there are several classes of stock, I'll consider them all with a tendency to go towards the common.

Kurt