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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 Mar 24, 2004 7:29pm
220 Views
Post# 7261428

RE: c warrants Good deal or bad Deal??

RE: c warrants Good deal or bad Deal??you are right about my post, although I followed it right away with another one stating that the warrants were a good buy because of the intrinsic value of the "time value" of the option. A lot has been written around options, strike prices, etc., etc. I believe the two people who had done the most work and who have a method, knows as the Black-Scholes method, attempts to predict the price of an option based on the strike price, time left before expiry, interest rates, etc. There are a number of sites that you can go to and then put in the factors (such as those above). Do I like them - yes. Why? With everything going on and the price of gold moving up I believe that CBJ will also move up and the warrants will move up. Are they as good a deal as the B were- no because they are pricey at this level. The added beauty is that CBJ seems to have turned the corner. New immense production on line. Check out the press releases. They will make money at the new money regardless of where gold goes (unless it tanks to below $200). So for all of these reasons I like the C warrants. Also for every 1 share of CBJ I can buy 2 warrants, so there is that more leverage, although in reality they trade 1:1. Very last thing I plotted the daily close of CBJ to CBJ (us) to CBJ wt and found that they were beginning to diverge. I used that as my buying signal. Who knows, maybe I am going deaf in the ear that I got the signal in as the warrants have not moved the way I had hoped that they would have. Having said that, neither have the regular shares...but give them time. Hope this helps. If you need more e-mail me and good luck to all.
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