OTCPK:APHWF - Post by User
Comment by
Ventouxon Nov 27, 2020 8:28am
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Post# 31987600
RE:RE:RE:RE:RE:RE:RE:Warrant Value At Strike Price For AHC.wt
RE:RE:RE:RE:RE:RE:RE:Warrant Value At Strike Price For AHC.wt@RTO
Without a doubt a $.78 warrant price versus yesterday's closing price is a great percentage gain, even a dinosaur like me can see that! However, for the warrant to trade at $.78 to you will agree the stock needs to go significantly higher. I invest to make money. Assume an investor owns 25,000 shares of AHC (average cost of $4.00) and wants to make $100,000.00 to compensate for her risk. At $8.00, mission accomplished. When does the stock trade at $8.00? She doesn't know, all that matters is that it does. How many warrants would she have to own to make the same $100,000.00 and would the stock trade high enough before the warrants expired to not lose her entire investment? She does not want to be glued to her computer screen watching every tick.
I wish you luck in your AHC warrants position as the only way the smart money, as you described the warrant crowd a couple of days ago are going to profit off this trade is if the not so smart money (me) makes money as well. Different strokes for different folks.
Since you seem to like leverage here is a trade I am in that (a) provides good leverage (1,500 %) at my entry price, if succesful (being defined as the issuer is still in business in 9 years)and (b) has an expiry date well into 2029. A 15 bagger over 9 years (35% per annum compounded ROR). A maintainence free investment as there are a finite number of outcomes. My kind of trade. How do I lose my money? The company would have to fail. And as this is a bond (junior), even under that scenario there might be some recovery of the initial investment.
Just as when the market's opinion of the future of AHC was bearish, the outlook for the mystery issuer is also bearish and the price of the securities reflect that view. There are several ways to get exposure to this company. I have chosen the longest dated bonds.
Good luck on the AHC. We are all in the same boat, just in different cabins.