Bullboard - Stock Discussion Forum Cenovus Energy Inc T.CVE

Alternate Symbol(s): CVE | CVE.WS | T.CVE.WT | T.CVE.PR.A | CNVEF | T.CVE.PR.B | T.CVE.PR.C | T.CVE.PR.E | T.CVE.PR.G

Cenovus Energy Inc. is a Canada-based integrated energy company. The Company has oil and natural gas production operations in Canada and the Asia Pacific region, and upgrading, refining and marketing operations in Canada and the United States. The Company's segments include Upstream, Downstream, and Corporate and Eliminations. Its Upstream segment includes Oil Sands, Conventional, and Offshore.... see more

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TSX:CVE - Post Discussion

Cenovus Energy Inc > Warrants Leverage almost 2:1

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Post by RagingBull3 on Jun 09, 2021 1:18pm

Warrants Leverage almost 2:1

Warrant Price $6.76 Commons Price $12.05.

For the same amount of money invested, you should get 2 to 1 performance with the warrants.

I was getting this confused and was thinking that Warrant Share Price performance would eventually become 2:1 on a percentage basis....But I think this is WRONG.

The leverage is on your initial investment.

All just my opinion/view/thinking/understanding.

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Comment by RagingBull3 on Jun 09, 2021 1:33pm

But % wise, warrants share price change should be almost double of that of the commons since the warrants are about 1/2 the price of the commons. But this % will change as the share price changes. Extreme Example: Common goes to $1000. Warrants intrinsic value 1000-6.54 = 993.46. So warrants price would be atleast 993.46. You also have Time ...more

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