Cenovus Energy Inc T.CVE

Alternate Symbol(s): CVE | CVE.WS | T.CVE.WT | T.CVE.PR.A | CNVEF | T.CVE.PR.B | T.CVE.PR.C | T.CVE.PR.E | T.CVE.PR.G

Energy Oil & Gas Integrated

Cenovus Energy Inc. is a Canada-based integrated energy company. The Company has oil and natural gas production operations in Canada and the Asia Pacific region, and upgrading, refining and marketing operations in Canada and the United States. The Company's segments include Upstream, Downstream, and Corporate and Eliminations. Its Upstream segment includes Oil Sands, Conventional, and Offshore. Its Downstream segment consists of Canadian Manufacturing, and United States Manufacturing. The Company's upstream operations include oil sands projects in northern Alberta, thermal and conventional crude oil, natural gas and natural gas liquids (NGLs) projects across Western Canada, crude oil production offshore Newfoundland and Labrador and natural gas and NGLs production offshore China and Indonesia. The Company's downstream operations include upgrading and refining operations in Canada and the United States, and commercial fuel operations across Canada.

TSX:CVE - Post by User

Cenovus Energy Inc > Warrants Leverage Extreme Example

<< Previous

Bullboard Posts

Next >>

Comment by RagingBull3on Feb 05, 2021 6:58pm

139 Views

Post# 32490985

RE:RE:RE:RE:Warrants Leverage Extreme Example

$2,125,189 divided by $1,134,500 = ~1.87 Times I think this is the Leverage. I'm not sure what you would call the 11,464 Times I calculated would be called. I got my mind into a pretzel. LOL

Anways, forget everything after the First Post. Husky4000 said my math was correct on my first post.

All just my opinion/view/thinking.

RagingBull3 wrote: 11,464x($100-$13.58)= $990,718.88

$990,718.88 +  $1,134,500 (common profits) = $2,215,218 (close to warrent profits)

So is it 11,464 TIMES leverage???? over the Commons??? After $13.58????

RagingBull3 wrote: Brain Fart..... no way it can be 11,464 times...... My Tin Foil Hat must be bent out of shape, and my thinking went down the wrong path...

$2,125,189 is not 11,464 times  $1,134,500............LOL

Yet, below still makes sense to me some how?

RagingBull3 wrote: I think In this example, the Leverage = 23809-12345= 11,464 TIMES !

So I think every penny over $13.58, warrents earn ~11,464 times over the common shares I think!!!

NOW that's Leverage!

Am I correct on this????

Again, all just my thinking/view/opinion/calculating...... Could be wrong, or way out on my thinking.

RagingBull3 wrote: You have $100,000 to spend. You can buy Warrents at $4.20 or Commons at $8.10.

$100,000/4.20= 23809 shares
$100,000/8.10= 12345 shares

1 year later common share price rockets up to $100

Profit on Commons = 12345x100 - $100,000 = $1,134,500

Profit on Warrents if you excerise them = 23809x100 -$100,000 -23809x6.54 = $2,125,189

When you buy the Warrants, you are paying for this leverage/Time Value.

I think in this situation the price of ~$13.58 would result where the outcome is the same (profits would be the same)

So, if in 5 years you think commons will go higher than $13.58, owning the warrents a better deal.

Ok, someone PLEASE check my math. Is my math and thinking correct, or am I way out to lunch???

All just my opinion/view/think/calculating