Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

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

Post by redfoxon Dec 27, 2004 10:34am
128 Views
Post# 8360545

recent posts on C and D warrants

recent posts on C and D warrantsWow is the best I can come up with. Some due diligence and common sense is in order. I have posted extensively on the merits, in my mind, of the C warrants - sorry, not the D's as they are way over-priced. At current prices, the best best is the stock itself as both the Cs and the Ds are way out of the money. As for the value of the warrants, there are a number of mathematical means of determining the intrinsic value of the warrants. Look up my previous posts is you want and I even point people to the appropriate web sites to actually see what they are worth. These are the same formulas that investment brokers use for their own accounts and are used widely in the investment community. One common misconception is that the warrants trade 1 to 1 with the shares. Check them out and you will see that this only happens at the expiration of the warrants (or at least close to the expiration) and only if the warrants are in the money. The Cs are now about 50 cents out of the money and the D's are more than $1 dollar out of the money, so dont get fooled with the 1:1 expectation. CBJ is truly undervalued when compared to its peers, no matter how you do the comparisons. The recent posts on the bauxite operations is misplaced- bauxite does not earn money and CBJ appears to have done this just to stay in the area, not as a true investment. Rosebel and what happens there is CBJ's future. Look at the recent 4 or 5 investment reports on this company and you will see that most analysis expect a significant move, but not for a few months. Having said all of the above I don't like the way that this is being run. They walked away from the Poderosa mine, which they desperately needed to add 100,000 ounces of production per year instead they used the money for general corporate uses. Would have been better to totally get rid of the hedge once and for all. Also dont like that CBJ has languished when the rest of the golds have taken off. Why- because investors dont like the hedge, or at least the memory of a huge hedge, and secondly because management have led us down the garden path too many times. Also when they raise money, they dont bother to go to their existing shareholders with warrants or rights, but keep helping out the big boys through private placements. Overall I have been long this many years and have owned Bs, Cs and shares. At this price the shares are by far the best bet, followed by Cs. The only attractiveness of the Ds is that there is a huge float. If they hit a dime, I might be tempted, but have to temper the greed with the reality that they have way too short a duration, and are way too far out of the money . Lastly if you are looking for information try searching under Sedar- the companies have to post, from a regulatory perspective, everything on sedar. So the questions on Cs, Ds expiry, conversions, etc., can all be found on sedar. best wishes to all.
Bullboard Posts