Mercator Minerals Ltd MLKKF

RE: RE: Warrants and Idiots

[Sharpie009]

Logic of your kind is why the word perplexing was first invented.  In terms of posting on this board last I looked it wasn't reserved for solely the pom pom girls.  Just because you choose to ignore or don't understand something does not mean it is incorrect.  Sharpie always willing and able to give basic lessons in warrant investing to PNGI.  First of all nobody ever said to base warrant analysis solely on leverage to the exclusion of everything else including time left till expiry. And whether or not you see any substantial upside to Yamana is not my problem either.  However the facts are as follows:

Simple table for simple minds

Mercator Common Share   Jan. 23 to Feb. 6

Jan. 23 Price  .55                               
Feb. 6   Price  .66                                                                    
Gain 20% 

Mercator warrant  A    Jan. 23 to Feb. 6   
Jan. 23 Price  .245
Feb. 6   Price  .24
Gain 0%   

Mercator Common Share Dec. 1 to Feb. 6
Dec. 1   Price    .44                                                                                                                                                                                 Feb. 6   Price    .66
Gain 50%

Mercator warrant Dec. 1 to Feb 6
Dec. 1   Price   .23                                
Feb. 6    Price   .20
Gain 0% 

Where is the leverage on the Mercator warrants? LOL

Yamana Share  Jan. 23 to Feb 6
Jan.23  Price  $9.58                                                                                  
Feb 6    Price  10.61
Gain 11%

Yamana Warrant Jan. 23 to Feb 6
Jan. 23  Price   $1.25
Feb 6     Price      1.56
Gain 25%

Yamana Share Dec 1 to Feb 6
Dec 1  Price   $6.00
Feb. 6  Price   10.61
Gain  77%

Yamana Warrant Dec 1 to Feb 6
Dec1  Price   .85                                                  
Feb 6 Price   1.56                                                                
Gain   84%                                                                                   

Who was better off?  Warrant holder or the common shareholder?  For Yamana clearly the warrant holder and for Mercator the common shareholder.  This concludes Sharpie 101 class on warrant investing for dummies.