RE:RE:RE:CVE WarrantMaxmoe, You take a "hit" on the warrents now on a bet that as in my example the commons will be higher than $13.58. You will breakeven at $10.74, and above $13.58 the gains on the warrents will outpace the commons almost 2 to 1.
It depends on how you want to bet, short term, or long term? and how soon and how high the commons will go. I'm thinking, if you think it will go significantly higher than $13.58 ($20+) in a year or 2 from now, the warrants maybe a good bet...... Otherwise I would go for the commons.
Right now, I'm not buying either.
All these numbers (breakeven/profit-breakeven/leverage ratio) I believe changes as share prices and maybe also changes depending on number of shares you buy.
All just my opinion/view/thinking/guessing.
Maxmoe wrote: The math doesn't work. Who would pay 4.20 for a warrant plus 6.54 to exercise it? That's a total cost of 10.74 per share, for a share that trades at $8.10? Makes no sense at all.
Husky4000 wrote: FairMount wrote: The warrant is trading at 4.2 now. What happens if I subscribe for the common share at an exercise price of 6.54? Does that mean I have to pay 6.54$ to buy each common share? Or I pay the difference of 6.54 minus the warrant price? Any clarification - much appreciated!
The warrant gives you the
right to buy CVE at 6.54.
Example: You got 1000 warrants trading at 4.20 worth 4200$
You decide to buy
exercice them. So you put 6540$ of your money. In exchange you got 1000 CVE valued at 8100$. If you were to sell, you would have a profit of 8100-6540=1560$.
So, which one is better? 4200 in warrants or 1560 in sharevalue?