GREY:CWWBF - Post by User
Post by
hrgoyalon Feb 17, 2019 3:02pm
287 Views
Post# 29377345
Warrants
Warrants CGOC warrants are quoting around 0.25. The expiry is in Jan 2020, less than a year away. The exercise price is $ 2.50. For warrant to be in money and worth buying at 0.25, share price has to be around $3.0 (Technically warrant will be in money at $2.51 but volume is so low, u can’t sell large quantity without crashing the price)
So what warrant holders/buyers expecting?
- CGOC to reduce the gap between NAV and share price? The gap exists because market assigns no or very little value to private holding which is 40-50%. Some of these private companies may never go public and even windup. CGOC wants to increase private holding further instead of reducing it.
- To aggressively buyback shares. They have buyback in place and have bought only 170K in last 3 months against 870K limit. Almost no buying in last 30 days. That is why price has not moved up. Management is spending money on advertisement and thinks “education” to investor will work. I don’t think so.
- 50-60% appreciation in share price, which may or may not happen.
So to me, if you buy or hold warrant at 0.25, either you will 2-4 times your money or lose all.