Current Risks of Owning Warrants

The Warrant Report May 23, 2012 Current Risks of Owning Warrants Interesting Day in the Markets Current Risks of Owning Warrants Interesting Day….. As we mentioned earlier this afternoon, this was an awesome day in the markets, so to recap again for you: Gold had been down over $30 to $1533 but closed at $1562, down only $6, and the HUI was down as low as 392.34 but closed virtually at the high of the day at 421.78, up 16.73. We have a long way to go but this is very encouraging as gold was beginning to look like a major break to the downside and then reversed. We really need to get back up above the $1600 level ASAP. But we thinking we have definitely seen the worst. Current Risk of Owning Warrants: We all should know the reason why we buy warrants. To capture the upside leverage of the warrants outperforming the common shares. To achieve a 2 to 1 leverage, that is our goals of owning warrants. With the current market situation, many of the companies with warrants trading have fallen greatly in price and thus well below the exercise price. Normally this would not bother me, but I would like to share one reason to be cautious. With the share prices of juniors so depressed this is an idea environment for a buyout or takeover of some of these companies. We did/nor do we buy warrants expecting a takeover. On a takeover, the warrants would still … Continue reading

Live from New York City

The Warrant Report May 14, 2012 Live from New York City We are currently in New York for the Hard Assets Conference on the 14th & 15th; and looking forward to visiting with some of our favorite people and companies which will be presenting. Also, we are talking with BNN (Business News Network) about a brief appearance on their Commodity Show with Andrew Bell, Tuesday May 15, 11:30EST. What is a Warrant? Why would you want to buy a warrant? Two great questions which we will be asked and which you can see our Learning Center for complete details or listen to us on BNN. Should be fun. Did you listen to my recent interview with Kerry Lutz of Financial Survival Network? I must admit, it might be the best for me. You decide. Get your favorite beverage and sit down for perhaps 15 minutes. You will get to know me, my views, my style and of course more of what we do at both Precious Metals Warrants as well as at The Greedy Guru. Let me know what you think….. Dudley Pierce Baker on Financial Survival Network with Kerry Lutz New York Hard Assets Conference: For those in the New York area for serious investors looking to visit and meet company executives, we invite you to join us on the 14th and 15th. Something to Remember: If you like a resource company and they have long-term warrants trading you owe it to yourself to explore this potential opportunity. Not all … Continue reading