Considering warrants, but limited value at present.I've had crz for a while and want to add to my position. I wish I grabbed the warrants when they were first issued but ce la vie.
So the strike is 5.50, currently trading for a 1.50 and acceleration of 15 days above 8.
Let's say one put in 5,000.00 and let's say a year from now or whenever, it's trading above 8, let's say 8.50.
By shares today at 4.38 would get you 1141 shares, and at 8.50 return 4703.20 profit.
By warrants today at 1.50 would get you 3333 shares, and at 8.50 return 5000.00 profit.
Difficult to justify the added risk of warrants for 6 % upside in the above scenario.
The only way it could really make it worth is if once it broke 8 it would have to really bounce to higher levels before the acceleration would kick in.
My experience in warrants is limited so would like to hear others thoughts.
The stock has pulled back enough where I'm looking to add, but took a second look at the warrants and I'm not seeing the value for the added risk at this point.