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Aberdeen International Inc T.AAB

Alternate Symbol(s):  AABVF

Aberdeen International Inc. (Aberdeen) is a Canada-based global resource investment company and merchant bank. The Company is focused on small capitalization companies in the rare metals and renewable energy sectors. Aberdeen’s primary investment objective is to realize returns by investing in pre-IPO and/or early-stage public resource companies with undeveloped or undervalued quality resources. The Company’s strategy is to optimize the return on its investments over a 24 to 36-month investment time frame. The Company’s investment portfolio consists of nine publicly traded investments and 14 privately held investments. The Company focuses on augmenting its investment strategy with a focus on renewable energies, particularly the hydrogen sector. The Company has investments in industries, such as base metals, lithium/energy, health, precious metals, agriculture, clean energy, and others.


TSX:AAB - Post by User

Bullboard Posts
Comment by mtsuiton Dec 16, 2009 10:49am
334 Views
Post# 16592351

RE: Question on PR issued this AM

RE: Question on PR issued this AMThe warrants you are looking at are in AAB's investment portfolio.  They are not the warrants issued by AAB.

"Intrinsic Value" means the in-the-money value.  If a stock is trading at 11 and you have a warrant to buy at 10 then the intrinsic value of the warrant is 1.  The "option value" respresents the additional value of the warrant due to leverage and loss limitation.  In this example the warrant holder gets all of the gains over 10, none of the losses under 10, and only has to use a fraction of 10 to make his investment.

It was very nice of Aberdeen to break this out because the basic Black Scholes option model significantly overstates the value of options if a company has issued so many that they become heavily dilutive.  A conservative analysis of Aberdeen's NAV would include only the "intrinsic value."  But if the company didn't provide it, then somebody trying to be conservative might unfairly ignore the entire value of the warrants.

Bullboard Posts