Alio Gold Inc. T.ALO

Cheap Warrants

[godisgr81]

Thank you for letting me have some more cheap warrants today.  For anyone that can actually calculate the time value of these warrants, they are still good value for risk.  Warrants are like call options on the sp. They should be trading at or above .30 and great risk reward ratio.  These warrants will trade well over .50 this year. 

God Bless the Longs........

[profittaker1]

@godisgr81, you could be right but the risk/reward isn't really there. If gold tops out at $1300 or $1350 in 2017, you are going to be hung out to dry as there is no underlying support for the warrants in the current share price. There are better warrants out there for optionality on the gold price. Compare them to AGB.WT. You pay only $0.03 in time value for 3 extra months to expiry (Aug 20

[godisgr81]

I beg to differ on your valuation. Only time will tell who is right. As for your other warrants, i'm not knowledgeable to speak for other stocks. I do know that we are in the money and as our sp goes up so will the warrants as it's value will increase along with the sp. I'm very bullish on ALO reaching my price target of $12 - $15 per share this year. The warrants will trade well over

[SLD11]

I like you optimism...but need some clarification. Is the exercise price (or strike price) on the warrants not $7.00. If this is correct and the stock price hits $12 (the low end of your range) before next May 30, won't the warrants be worth approx. $4.50 - 5.00 which is 18-20 times the current price (a little more than triple).? Same, GL all longs.

[profittaker1]

It's 10 warrants per share with a $7/share conversion price. If ALO.TO ended up at $8, they would be worth $0.10. If ALO.TO ended up at $10, they would be worth $0.30 and so on... (Share Price - $7)/10 = warrant price.

[SLD11]

Thank you, that mkes more sense. SLD11