RE: Voice in the Wilderness... of Warrant COnce the SP reaches $32, the warrants will appreciate dollar for dollar with the SP with a small leakage as time passes. As the expiry date (3SEP13) approaches, the value of the warrants will equal SP - $32. If unexercised, they become worthless on 4SEP13.
The value is in the leverage. If the SP were $32 and the warrants $8 say. Then a $1 increase in the SP (about 3%) would translate into $1 increase in the warrant or about 12%. Thats leverage, plain and simple.
I won't argue with haligonian's valuation, but I find the math a little fuzzy. That being said, I added to my warrant position today and I feel they're a far better speculative investment than the stock because of their long duration and extra leverage. It seems to me by the recent price action that the warrant price is being managed. If I had to guess, I;d say maybe somebody has a paired trade being long the stock and short the warrants. Who knows, if thats the case, we can expect a dramatic surge in the warrant price if the SP really starts to move up.
From a more fundamental approach, it looks to me like Kinross emptied all the skeletons from the closet with the 3rd quarter results and I'm expecting a stellar 4th quarter result. GLTA