TSXV:EVE.H - Post by User
Comment by
Hempvestoron Dec 24, 2019 12:15am
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Post# 30486535
RE:warrants
RE:warrantsWell that depends...
Let’s say you believe Eve is going to hit 1$ within the next 6 months. If you pick up your warrants now (none on the ask but let’s just say you can get filled at .04) and the strike price is .60, you’d be in the money once the stock passes .64. If you don’t plan on exercising them and just want to trade them, you can pick them up here and wait for the stock price to pass .60 before April 11 2021. Once it does, the price of the warrants will inevitably run..
1$ for the common shares would likely fetch .30+ for the warrants. Your ROI would be much higher than if you were holding common shares, since .20 (using this to simplify the math) to 1$ would be 400%. Meanwhile, your warrants would have ran from .04 to .30 (once again, keeping it as simple as possible) resulting in a 650% ROI. Obviously, if you see it going past 1$ then your ROI would only increase exponentially. I’m going to be honest and admit that this is just my opinion based on my experience trading equities, so I could be wrong. I’m also not the best when it comes to finding True Value of warrants... but I’m sure you understand the gist of it.
Imagine the fair value given by the analysts over at simplywall.st becoming a reality and Eve hits $3.28 before April 11, 2021.. holding common shares from .20 would fetch a 1500% ROI but imagine what your .04 warrants would fetch you lol.. very likely over $2, which would bring you a whopping 5000% ROI. Then again, I’m sure they’d accelerate them at that point... but still. Don’t take analysts word as law, I’m just using this as an example to show how explosive things can get for us this year in terms of SP.