RE:RE:DME WarrantsYes, the price does seem perhaps a bit high based purely on the distance DME's stock price would need to appreciate in order to reach the exdercise price. However, another important factor is the volatility, which has been incredibly high for DME's stock lately (and in general for that matter) - i.e. DME's stock price dropped almost in half in the course of a couple of months, and could potentially appreciate back to/above prior levels quickly (as it has at various points in the past. I think volatility is probably driving the current premium for DME.WT. As stated earlier, I have more experience with US-traded call/put options than TSX-V-traded warrants, so I certainly welcome any additional/different insights/perspectives.
In any case, I am glad to have taken my bite at C$.15 and probably won't bite further unless the price drops back to those levels or DME's price starts appreciating signifciantly again. I wonder if the registration of another 545,000 warrants (just announced) on Thursday will create a lot of additional supply that creates a better entry point for DME.WT than is currently available.
Certainly interesting times with DME's stock price of late. I keep nibbling more and more at these comparatively very low levels, but increasingly to the detriment of my diversification principles. I know that a stock like DME still has a lot of risk/uncertainly until we actually see meaningful production/revenue numbers to better inform/validate the projections that so many of us have, but it is hard not to see this as a price that is just too hard to pass up - unless of course this proves to be a massive boondoggle or fraud. I assume the risk and have no one else to blame in continuing to buy more here.
Thanks as always for your cool-headed perspective, Fredo - it is certainly valued.