Post by
sark666 on Jul 27, 2018 4:30am
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.
Comment by
Druckenmiller on Jul 27, 2018 8:55am
Great question, while I was in WEED during last year's run-up. I watched those ACB warrants fly. It would be nice if someone could add some color to their thoughts on Crz warrants.
Comment by
sark666 on Jul 27, 2018 1:38pm
Well, the acceleration clause can seriously hamper any 'flying' this might do. As I mentioned, it would have to fly pretty strong above 8 quickly before the 15 day accel kicked in.