Warren Buffett Likes Warrants – Should You??

The Warrant Report August 29, 2011 Warren Buffett Likes Warrants – Should You?? In this issue: Warren Buffett Likes Warrants – Should You? Riding the Rollercoaster….. Warren Buffett is at it again, helping out the financial sector, via his recent $5 Billion investment in Bank of America. An incredibly savvy investor he virtually always insists on receiving long-term warrants as part of his investment package. In this case, and to summarize the highlights of this BOA transaction: 50,000 perpetual preferred shares 6% dividend per year Redeemable at a 5% premium Warrants – 700 million warrants, 10 year life with an exercise price of $7.14 Warren Buffett has it figured out correctly. If you can get a long term warrant on a company you like this presents an excellent opportunity for potentially large gains on your investments. See complete details. Some of you may remember our article back in 2008 when Buffett invested in/bailed out Goldman Sachs and GE and again insisted on receiving long term warrants as part of his investment package. Warren Buffett Likes Warrants Think about it.  A warrant, a long term call if you will, on a company that you like that greatly limits your cash outlay while offering you the potential for great gains. The leverage is the key to warrants, a greater gain on your investment dollars.  If you need more information you can visit our Learning Center. Riding the Rollercoaster….. We are pleased to provide our most recent interview with Ellis Martin with our … Continue reading

Uncle Sam Goes on Life-Support

The Warrant Report August 22, 2011 Uncle Sam Goes on Life-Support In this issue: Uncle Sam Goes On Life-Support Using Options and Warrants in Volatile Markets Uncle Sam Goes On Life-Support This is a great article written by good friend and editor, Alex Grattan, of El Ojo del Lago here in Mexico. Yes, this is a political take on the U.S. but Alex brings out some great points that all sides should appreciate. After you read the article, I would encourage you to spend a few minutes on their main website for more info on Chapala/Ajijic, Mexico which I proudly call home. Uncle Sam Goes On Life-Support Using Options and Warrants in Volatile Markets We presented this piece to you earlier in the week but if you did not read it I would encourage you to do so. This article appears on several websites and we are happy to see it up on 321Gold.com. Using Options and Warrants in Volatile Markets “Think about it.  A warrant, a long term call if you will, on a company that you like that greatly limits your cash outlay while offering you the potential for great gains. The leverage is the key to warrants, a greater gain on your investment dollars”.  If you need more information you can visit our Learning Center. We saw this interesting quote recently: ….” if we are all in the parade who is going to watch us walk by” Think about this the next time you try and convince a … Continue reading

Using Options and Warrants in Volatile Markets

The Warrant Report August 15, 2011 Using Options and Warrants in Volatile Markets In this issue: Using Options and Warrants in Volatile Markets In these volatile markets, investors should be aware of some of the advantages of using options, but even more so, long-term warrants in their investment planning. With the markets up one day down the next and the future somewhat uncertain perhaps a slightly different approach might be necessary. The use of options, warrants and even LEAPS would greatly limit your initial cash outlay of your investment dollars. Thus, you can control a share position in a company with much less money but still process the potential for great gains. This is what we would call a “win-win situation”. If you are a current subscriber, you should already know this, but it is always good to hear it again. Basic Definitions A call option gives the holder the right but not the obligation to buy the underlying common shares at a specific price and expiring on a specific date. Options will have a predetermined life of no more than 12 months and would normally be traded on the Chicago Board Option Exchange (CBOE). A LEAP has the same definition but could start out with a predetermined life of up to 2 years and again would trade on the CBOE. Warrants, while somewhat similar, have some different features. Warrants are issued by the company (not written by an investor) in connection with a stock offering or financial arrangement and … Continue reading

Precious Metals Stocks is the Place to Be

The Warrant Report August 8, 2011 Precious Metals Stocks is the Place to Be In this issue: Monday Morning Markets Will Be Interesting Precious Metals Stocks is the Place to be Monday Morning Markets Will Be Interesting With the downgrading of the credit rating of the U.S. after the markets closed last Friday, what should we expect on Monday’s open? Frankly, this is anyone’s guess as to the direction of the financial markets but it has to be just one more significant reason to be an investor in precious metals, gold and silver. After watching the Sunday morning talk/political shows in the U.S., it seems clear, to me, that no one can agree on anything, absolutely nothing! Why did Standard and Poor’s downgrade the credit rating of the  U.S.? Was it about the debts of the U.S. or the obvious inability of the government to reach a compromise of substance and pushing the U.S. to within hours of a technical default? We are unfortunately witnessing a total political dysfunction of the U.S. Government. There is no willingness, yet, to compromise, and now that is a dirty word. Kind of like, it is my way or the highway approach to government. Let’s see how far this gets? Why is the discussion of budget cuts so difficult? Each of us reading this can probably say, that we are wasteful in numerous ways and that we could ‘easily’ cut back a minimum of 5% to 10% of our spending without any real change … Continue reading

Doug Casey, Marc Faber, Dudley Pierce Baker and others…….

The Warrant Report August 3, 2011 Doug Casey, Marc Faber, Dudley Pierce Baker and others……. In this issue: Don’t Bet Against Gold Dudley is in good company…… Two random examples of performance Don’t Bet Against Gold Finally after weeks of haggling in Washington, a ‘deal’ was reached. While the ‘deal’ might have given a short term bit of political relief the markets are not buying it. On Tuesday the S&P plunged below major support and is now down for the year. In early trading today (Wednesday) the market down again for I believe the 9th straight day. The big winner – GOLD. Surging to new highs gold closed on Tuesday at $1660 up about $40 for the day. This morning gold is up another $10 plus. So, gold is telling us, ‘this deal really sucks’. Can gold continue to rise is anyone’s guess at this point. Short-term is always a crap shoot Long-term a guaranteed winner Dudley is in good company Recently Jeff Berwick at The Dollar Vigilante mentioned us along with some of the great names in the investment arena. Why? Because each of us mentioned lives outside of the United States which gives us a slightly different view of the world and better to serve of our followers, imo. From July 15th issue of The Dollar Vigilante, to read the entire piece go to this link: http://www.dollarvigilante.com/blog/2011/7/15/how-i-became-an-anarchist.html “…Recently I was surfing the internet and reading some of my favorite writers and thinkers when something dawned on me.  I … Continue reading