Post by
barsax on Jan 19, 2021 11:09am
Huge disconnect
between the US warrants ($3.00 - 4.00 bid/ask) and the underlying stock ($7.80 ish - 8.120)??? That's crazy.
The warrants convert @ $7.50, so that's a pretty good indication of where the buyer of the warrants thinks the price will be. These US shares < $8.00 are a steal......stop the steal.
Comment by
barsax on Jan 19, 2021 11:17am
If this keeps up, pretty soon the warrants are going to be priced ABOVE the underlying shares!!
Comment by
barsax on Jan 19, 2021 12:35pm
the disconnect is probably caused by folks shorting the stock (putting downward price pressure on the shares), and offsetting the short by purchasing the warrant (creating upward price pressure on the warrants. Hence the over-done price compression between the warrants and the stock.
Comment by
barsax on Jan 20, 2021 1:51pm
I feel like the play here is to short 1 share and use the proceeds of the short sale to buy 2 warrants, for just about net zero cost. I'm not sure if my volume readings are 100% accurate, but from what I can see US listed A warrants have traded at least double the volume of the US listed shares.