we are strongly in the money and now the warrants will move almost penny for penny as the common heads higher--the leverage is great--we have around $1.20 time premium- of course this will lessen as time wears on --these warrants expire in around 2 years-- would not buy the common
if the common in 3 months goes to 12 from 6 that is 100%
the warrants will go from 2 to at least 8 that is 300%
It amazes me that more people haven't discovered them.
I know they're risky, and clearly not for everybody. For PAL or palladium bulls, they offer a lot of bang for the buck. With more than 20 months left before expiration, it's hard to see how a buyer of the warrants can lose (unless, of course, we find ourselves in a genuine depression, or worse). Nevertheless, even though they've had a nice move up, the volume is still very low.
I guess it means more buying opportunities for those of us who are brave (or crazy) enough to take the plunge.
I still think the stock is a better play than the warrant. Sure warrant is up 29%. But a leverage stock position, leveraged at 33% marin, could rip 3 time the equity itself, 3 * 9% today = 27%. About the same. A leveraged equity account gives you buying power so you can accumulate more shares on the way up, where as the warrant only controls a constant number of shares.
Under ideal situation, you can buy shares at twice the speed of share appreciation. Therefore if the stock goes up double, your long position could increase to quadruple and your portfolio value could increase 8 fold.
I am determined to become a top five shareholder of PAL, and I might actually be able to reach my goal within a year. So folks who swing trade, I might be the one buying your shares. And I will not sell once I grab your shares.
around 5.05 or 5.20- we are in the money--buy the warrants if you think pal is going higher and higher--platinum is up 54 dollars --palladium is lagging-- I think this stock goes to 7 soon and the warrants go to 3--just my opinion--expire around dec 09-- a life time and they are not callable