Post by
SIGG1 on Dec 30, 2020 4:19pm
Warrants
why did they go down this much today, can somebody explain why?
Comment by
Snowhouse on Dec 30, 2020 7:12pm
Because there are no buyers. Look at the volume. Approx 60k volume traded and warrants down 34%.
Comment by
BB123456 on Dec 30, 2020 9:51pm
The stock went to $4.00, so the warrants went down to match. The warrants give you the right to buy the shares at $2.50 for 3 years, so at $1.65 the warrants are relatively fairly valued.
Comment by
SIGG1 on Dec 31, 2020 9:23am
that makes sense thanks for the explanation, so that means if CFW share price was gonna fall to $2.50 or below warrants could sell for $0.005
Comment by
BB123456 on Dec 31, 2020 9:36am
If CFW went to $250, the warrant would be valued like a 3-year at the money option, so it would still probably trade in the $0.20 - $0.30 range as the people would buy as a cheap way to get exposure to the stock . WIll be interesting to see where the shares settle out in the next week. Currently CWF at $3.85, so just under $0.08 pre-split