RE:Following Warrants up 28% today How can warrants increase in value be bearish!? Warrants price is what you will pay for your stock... You can exercise your right to purchase the warrant prior to expiry...
FLT.WT.A are 1.60$ (Current market price)+ 0.95$ Which makes your total cost per share 2.55$... which is above the value of the current share price... assuming the price opens at the bids you mentioned at 1.40$.... it is worth 2.35$... This is assuming you buy your warrants at 1.40$... I have FLT.WT.B warrants at 0.2$ average I got early January
InvestForce wrote: This is a bit complicated but very interesting. Recall that DDC issued warrants and that is how they raise money. These are active now so I'll try to explain how this is potentially useful knowledge.
https://money.tmx.com/en/quote/FLT.WT.A Background: A warrant is issued by the company (DDC --> Purchaser) and so differs from a stock option which comes from the open market pool of stock owners (Open Market --> Purchaser). So warrants g
ive the holder the right to purchase a company's stock at a specific price and specific date and is used when a company doesn't issue options or wants to control share offerings. BOTH options and warrants have an expiration date.
The Observation: These warrants, with expiry dates, are being sold and were up 28% today, now valued at $1.60.
A Possible Interpretation: Obviously, the price of a warant has to be less than the stock price of FLT or else what's the advantage. Some could see this as a possible floor for FLT because it's a bet that the spread between the stock of the parent company (FLT) and the warrant is kept large enough. But, even warrants can fall so maybe that's not such a reliable marker. (Now buy/ask near $1.40 in my brokerage account after hours)
I'm not sure if there is any further depth or insight that can be gained from this and so I'll limit my thoughts and listen to anyone else that might have more to add that might know about the significance of the moves in the warrant market. My only point is that it could be a parallel indicator and possibly an predictor of the confidence in the price action of FLT.V, whether bullish or bearish. I don't know if I'm right but maybe it's of interest.