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Barkerville Gold Mns Ltd BGMZF

Barkerville Gold Mines Ltd is a Canada based company operates in the business of Gold. It is engaged in the production and sale of gold, and the exploration, development, and acquisition of mineral properties in British Columbia. The mineral tenures cover approximately 2,000 square kilometres. The company primarily holds interests in Cariboo Gold Belt District, Island Mountain, Cow Mountain and Barkerville Mountain.


OTCQX:BGMZF - Post by User

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Comment by ovison Sep 07, 2012 3:24pm
198 Views
Post# 20334248

RE: RE: RE: RE: RE: RE: RE: RE: Material Change NR

RE: RE: RE: RE: RE: RE: RE: RE: Material Change NR

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Regarding warrants ovis, you and bloomfield were questioning the shorting at $1.10 as the $1.10 warrant holders shorting. That wouldn't be the case only because you don't short a stock to exercise a warrant at the same price unless you're management and you need to raise cash for the company.

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2guys, Well, the short would have to be a few percent above the exercise price to lock in a profit. However, as we have seen from the CTO, that strategy was far from risk free as I had suggested earlier. The risk of  CTO adds risk. My bad but I now understand that risk much better from analysis of BGM.

 

The strategy I suggested wasn't to exercise the warrant but rather to use the warrant to make the shorting of the stock risk free -- i.e. if you hold the 1.10 warrant then shorting at $1.15 gives you a 5% profit without much risk (except of course if a CTO causes your warrant to exprire and your short goes from covered to naked). The ideal strategy for such players would have been to cover on dips below $1.10 and then repeat again as often as possible.  Generating a 5% return over a few weeks on  very low risk is a nice game -- pity though about the CTO risk though.

 

Anyways, I have to agree with you that we'll have to wait and see what the financials deliver. I don't see where we can learn anything more from the May financials. The game has been played. We only wait the final score. Thank-you for the discussion.

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