Total Gridlock: What’s Next For the Markets?

The Warrant Report July 26, 2011 Total Gridlock: What’s Next For the Markets? As we write this piece on Tuesday July 26 around 12:05PM, CST, the world seems to be waiting for a resolution to the ridiculous budget standoff going on in Washington, DC. Gold is close to historic highs at $1614, US Dollar down to 73.56 and down against every currency trading and the S&P is down for another day. The markets hate uncertainty and we currently have our hands full. We sure don’t have all of the answers but we encourage you to listen to my latest interview with Ellis Martin of the Ellis Martin Reports. Sometimes the greatest opportunities arise in challenging times, so perhaps you should be positioned to benefit over the next few years. We encourage everyone, subscribers and non-subscribers to perform your own due diligence or consult with your investment advisors before purchasing any shares or warrants. I saw an 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 friend or family member to invest in resource shares or warrants. Most just don’t get it, at least, not yet. Our Gold Subscribers have unlimited access to our Warrant Database and also access to my personal portfolio and to our Insider Trading data with Buy and Sell recommendations. My personal portfolio now includes over 80 different positions. PRICE OF OUR SERVICES Some of you … Continue reading

Warrants in Mergers — What’s the Deal?

The Warrant Report July 20, 2011 Warrants in Mergers — What’s the Deal? When two companies decide to merge it is usually rather straight forward as to how much shareholders of the company being acquired will receive, either in cash or in shares of the acquiring company. If the acquiring (aggressor) company has warrants trading there is no change in those warrants. The warrants will continue to trade on the new combined company. But when the company being acquired has warrants trading, ah, now we have something to think about. There are basically two issues: 1. The exercise price of the warrant 2. The expiration date of the warrant Rarely are the warrants bought out for cash in which case the warrant terms are required to be adjusted to reflect the share terms of the merger and the warrants will continue to trade but are now warrants on the acquiring company. When confronted with the situation where warrants which are included in our warrant database are involved in a merger we try and get a handle on what the ‘proposed’ merger will look like for subscribers and warrant holders. Let’s take two live examples and you can see what we are talking about. A. Golden Minerals is proposing to buyout ECU Mining which has warrants trading and in our database. The terms basically call for ECU shareholders to receive .05 shares for each share held plus some cash. (Note: Golden Minerals (AUM) sells for around C$18.00 and ECU sells for … Continue reading