Gunnison Copper Corp T.GCU

Warrants are useless

[rexrex]

The warrants are useless right now. Does not make sense for retail investors to buy the warrant at say $0.20 cents which allows them to excercise it to purchase a share for $1.25. Total cost would be $1.45. So unless the price exceeds well above $1.45 there is no point in purchasing them right now. Cheaper to buy shares at $0.95 cents today. Some might see it prudent to buy and hold those warrants and sell them when Excelsior is trading above $2, however the premise is the same. In all scenarios, one expects Excelsior to cross the $1.45 price mark. Excelsior will have to trade at atleast $2 for any of the warrants to make sense. In my opinion it will trade above $2 but it is a matter of waiting. The warrants have a time limit of 18 months which expires on August 22, 2022. So whoever will but the warrants has to have them to exercise them by that date. In my opinion Excelsior will hit $2 in a month or two and the warrants will mostly be excercised by the big players who bought into the PP. Like I mentioned before, the shares of the PP were not available on Scotia Platform to buy which means they were sold to large networth clients or to funds. I am not sure if PI investors got to buy in, I don't use that broker. I suppose the shares have a hold period of 4 months. In any case the concept of warrants and PP largely relies on Excelsior crossing a certain price point for the new investors to make money. Like I said before when big money comes flowing in, they normally don't flip for pennies. They expect atleast a double or 3 baggar in my opinion. So safe to say $1.90 and $2.85 is their price target. In my opinion.

[HisNoodlinessTheFlyingSpaghettiMonster]

Rex, what you write makes no sense.  If you have such a high conviction that the price will be $2 in a few months, then you buy the warrants hand over fist at 17 cents and make 5x your investment rather than 2x.  Under that scenario in a copper bull market, they would likely be trading at 80-90 cents at least.  Do you have a basic understanding of options?

[rexrex]

Suppose you buy a warrant today for $.20 (to keep numbers even). Suppose the share price of Excelsior is $2. Now you excercised the warrant. Now please show me your total cost. Break the numbers down so I can understand.

[HisNoodlinessTheFlyingSpaghettiMonster]

The facts are the warrants are selling at 17 cents, so let's start there.  That is a big difference between those two numbers in a leveraged bet such as warrants.  17 cents is the current price. If I invest in warrants at 17 cents and the share price advances to 2 dollars in a few months, the price of the stock minus strike price would be 75 cents.  That doesn't take into

[rexrex]

I think you are thinking trading of warrants while I am thinking excercising the warrants. My point being, it makes no sense to buy the warrant today if the share price is less than $1.25 and warrant is only profitable if share price exceeds $1.25. (plus factor in the cost of your warrant).

[HisNoodlinessTheFlyingSpaghettiMonster]

If you are ultra bullish on the stock to the degree you are stating, you buy the warrants.  You can then sell them on the open market rather than exercising if you please. The value of the warrant will change with changing share price, in relation to the strike price. All I was saying is that given your ultra bullish stance over the next few months, you are advocating not buying the very

[rexrex]

Alright alright, I stand corrected. Atleast this conversations keep the board alive. Not the same I can say for updates from Management. However something positive must be happening in the background for share price to close at $0.95 cents level. Hopefully they will shoot up tomorrow.

[rexrex]

Suppose you buy a warrant today for $.20 (to keep numbers even). Suppose the share price of Excelsior is $2. Now you excercised the warrant. Now please show me your total cost. Break the numbers down so I can understand.

[marketsense]

Ah,  Rex,   the object is not to exercise the warrants but to sell them at 2x, 3x or more   Remember, those warrants are essentially free if the pp holders sold their stock around.95.   Not only  that,  it was a perfect set up for the PP's  to even pre sell the stock(actually go short) and then  cover in the .90's.  I hate these kind of

[rexrex]

Thanks Marketsense, noted and makes sense.