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RED EAGLE EXPLORATION LIMITED V.XR

"Red Eagle Exploration Ltd is engaged in the exploration, development and permitting of mineral properties. It owns the California Gold, Vetas Gold and Santa Ana Silver projects."


TSXV:XR - Post by User

Comment by redfoxon Feb 11, 2004 9:01pm
445 Views
Post# 7043874

RE: The Warrants.......

RE: The Warrants.......Iveson, the warrants are an excellent hedge. There are programs out there that place a value to the warrants based on their time value, exercise price, cost of money,etc. Know what the value is given that the stock is over $4? If you guessed that the Cs should be quite a bit higher, then you are a wizard. They are going up. Have a look at the ownership. >> 10% is held by institutions and mutual funds. They understand how warrants work and their "value" as a hedge. People will wake up and realize that with 4 years left in the warrants and now that they are above the exercise price and with all the good things coming out of CBJ - lower hedge book, increased reserves, new mines, etc., etc.,that this will go up. How high is anyone's guess and will track the stock very well, although not on a 1:1 basis. The program that I use has a delta of 73.6% so that for every 1 cent change in the underlying stock there should be .736 of a cent increase. Fun stuff if you can get your hands on the right program. Also track the CBJ-T versus CBJ - A and CBJ.WT.c-T and you will see a clear correlation, except that the Cs are lagging behind. This can only mean that they are undervalued. Pure and Simple. Hope this helps those that are interested in the warrants. Glad to share more information to those interested. email me. best wishes to everyone.
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