PM Warrants - A Huge Boost to Fool's Portfolios
Warrants are powerful - yet still relatively misunderstood to the general investing community. If you are long gold and silver, they AT LEAST deserve some of your attention! Read up.
January 2011 - Franco Nevada stock: $30 ish. Franco '12 Warrants (Strike of $32) : $3.5.
The Call - "I like for example the Franco-Nevada warrants... I think they will perform much better before expiration and now have >3:1 leverage. These could easily return 4-5x your money. This is in light of them basically stealing gold wheaton which adds immediate cash flow to the company, to the tune of 30,000 ounces each quarter at a cash costs of $400. Following this acquisition, using a 1400 gold price in perpetuity, Franco should be trading for about double the current price." That's in a message from Hyperinflation on Seeking Alpha, better known as Speedybure on here.
Today - Sept. 2011 - Stock: $45+, which I expect to go much higher in coming months due to NYSE listing this week, and of course a great 3q and 4q, where you can expect revenue to top $100 mill in both quarters).
Warrants: $13+! A little over a 3-bagger for me. Good call, Speedy. A powerful example of the leverage warrants offer.
Please read up on New Gold '12 and '17 warrants, and Kinross '14 warrants (currently my favorite).
**Invest carefully. Never invest more than you are not comfortable with in warrants, as they do pose obvious risks. You can lose it all. I like to split up my money in them, for example, and they are always among the smallest positions in my portfolio (at least in the beginning). I never invest more than I am willing to lose. And they generally lack liquidity, so I try to start selling well before the exp. date. Place LIMIT orders only. Though I must add, I've started to shed the aforementioned Franco warrants, and have had no problem at all. My initial investment is already off the table, into another investment. Houses money!
US Symbols: New Gold 2017 -
New Gold 2012 - NEGWF.pk
Kinross 2014 - KNCGF
And of course, I like the Sandstorm 2014 warrants. SNXXF
Must see websites: Full list of warrants available plus leverage and "bargains." Canadianwarrants.com, and read up on warrants atPreciousmetalswarrants.com
Long all of the above.