GREY:RNSFF - Post by User
Comment by
ferret_caon Oct 19, 2017 6:07pm
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Post# 26834038
RE:Warrants
RE:Warrantsthe value is in the 3 year timeline til they expire and the extra leaverage you have during that time frame. what you say only makes sense if the warrants were going to expire in a very short time frame, I doubt you see any expanding to the .20 spread until you get to within a coupla months of expirery.
here"s an example of your leverage from today. so lets say roe trades to .80 sometime early next year on some good results (someone has an .80+ target on it) so
roe now .26 roe in feb .80 so you make 3.07x your money here
roe.wt.a .13 now in feb .60 so you7 make 4.61x your money here, and this is with the full .20 spread with NO value for timeline so this is absolute worst case and won't happen.
roe.wt.a .13 now .70 in feb is more likely so 5.38 times your money
lets say roe goes to just .52
roe .26 now .52 feb so you make 2x your money
roe.wt.a .13 now say just .32 feb same scenario as above O val for time you make 2.46x
more realisticly it goes to .42 which gives you 3.23x your money
capiche!!!! lol
cheers ferret