RE: Warrants lagging shares big timependagron,
I just ran through the numbers again and I was a bit surprised:
using a strike price of $3.75 and the current share price of $3.84 and an interest rate of 4.5% and a volatility of 40% with a 4 year life in the warrants yields a theoretical value of the warrants at $1.46.
Therefore the value of roughly $1.50 is not too out of whack.
Having said all of that I think the warrants are still a good bet but the only thing is that the warrants have dropped about 10%, while the shares dropped close to 30%. Shares have rallied but the warrants have not because they didn't drop in the first place as much as the shares.
CBJ has turned around and will be a great keeper especially with the various new mines coming on stream. Certainly yesterday, or Monday would have been good days to buy the shares and not the warrants.
You also rightly point out that the float is not there. I am, though, puzzled on your statement that someone could arbitrage the warrants. What do you mean by that given that the warrants are out fo the money by a long strecth (also lots of time left in them)?
cheers and profitable investing.