Definition Of A Stock Warrant

Several years ago in New York at a Hard Assets Investment Conference, a newsletter writer with over 30 years in the business, asked me, “Dudley, what is a stock warrant?” After regaining my composure, I responded just like I am addressing you, by defining a warrant and why you should be interested. By definition, a warrant is a security, issued by a company, giving the holder the right, but not the obligation, to acquire the underlying shares, at a specific price and expiring on a specific date in the future. This definition is very similar to stock options or LEAPS, (Long-Term Equity Anticipation Securities) except that warrants are actually issued by a company, whereas options and LEAPS are created/written by investors. Warrants are traditionally issued in connection with a company’s private placement or equity offering as additional incentive to get the deal done. Warrants are mostly a matter of common sense and arithmetic, so let’s not make this complicated. Stock warrants can be issued by companies for as little as 1 year or for 5 years or more. Obviously, the longer the term of the warrant (time until expiration) the better your chances of great success. However, just because a stock warrant has a 5 year life does not mean that you must hold the warrant for 5 years. With trading warrants you can buy the warrants one day and sell them the next day. Exercising a warrant should never be one of your considerations, as it makes no sense … Continue reading

The History Of Stock Warrants

Warrants have literally been available for investors for many decades but yet are very under appreciated and overlooked by most investors. As far back as the 1920s many large companies have had stock warrants trading, AT&T, Goldcorp, Bank of America, General Motors, Ford Motors and Agnico-Eagle Mines, among hundreds and hundreds of others. My extensive knowledge of warrants goes back to the 1970’s and my fascination with the writings of Sidney Fried and The R.H.M. Warrant Survey, a hard copy newsletter and a popular financial newsletter during the 1950s, 60s and 70s. (Fried, 1949) Sidney Fried passed away in 1991 at the age of 72 and to the best of my knowledge, his service stopped in the late 1970s or early 1980s around the time that options began to trade on the CBOE. Sidney Fried’s first book, ‘The Speculative Merits of Common Stock Warrants’ (1949) is a rare and timeless educational tool for warrants and is the core of knowledge used by me in my service. Since 2005 I have used this cumulative knowledge of warrants which I learned from the ‘master’ to educate and assist investors around the world and I have collected all of the writings of Sidney Fried. Even though these works are old, the information is timeless and only the examples used are out of date. One quote from Sidney Fried which I have used many times at investment conferences is very appropriate here: “With potential profits and losses so great it a source of wonder that so little understanding … Continue reading

Where Was Gold One Year Ago?

January 30, 2018 By: Dudley Pierce Baker Founder – Editor Where Was Gold One Year Ago? January 30, 2018 One year ago I wrote this piece below and it is an interesting perspective on where we are today and where we were one year ago. I did update the articles below for current content but I did leave the one article, Turbo Charge Your Stock Profits With Stock Warrants, which is an interview that I did with Kerry Lutz of Financial Survival Network. Today, gold closed at $1339, versus, $1194 so it has been a good year for gold. “January 30, 2017 Current Markets I still see the possibility of gold heading back down to the $1168 to $1180 area but as I write we are up 6.20 to $1194. I’ll admit this would not be much of a decline, but I am hoping to get some orders executed which are placed just below the market. We see the likely scenario that gold, silver and shares/warrants continue higher. so you need to be rapping up your buying soon. I see many promotional pieces for other newsletter services touting a small (unnamed) oil and gas company and an (unnamed) gold company. I can read between the lines and actually know the names of these companies and more importantly that those two companies have long-term stock warrants trading with over 4 years of remaining life. These newsletter writers do not tell you about the warrants and perhaps they do not even … Continue reading

International Metal Writers Conference – Video Of Conference

Cambridge House has provided us with a audio of the complete recent conference. This is a great opportunity for you to see and listen to the experts in action. I attended and participated in the show and got to visit with many including Frank Holmes, Rick Rule, David Morgan, Nick Hodge, Mickey Fulp and many others….. Enjoy, International Metal Writers Conference – Video Of Conference … Continue reading

Investors keep flocking to gold, push metal to three-month high

February 9, 2017 Cecilia Jamasmie (Image: Shutterstock.) Gold prices climbed Wednesday for a fifth-straight session as geopolitical uncertainty ahead of European elections pushed the metal to its highest price in about three months. Holdings in the SPDR Gold Shares ETF rose 8.3 tonnes to 827 tonnes as of Tuesday, the highest since Dec. 20.Bullion was last up at $1,242.20 an ounce, after hitting $1,245.40 earlier in the day. This means that, so far this year, the precious metal has gained more than 8%. In contrast, the ICE U.S. Dollar Index has lost about 1.9% even though it traded slightly higher on Wednesday. Meanwhile, holdings in the SPDR Gold Shares ETF rose 8.3 tonnes to 827 tonnes as of Tuesday, the highest since Dec. 20, according to data compiled by Bloomberg. Investors remain worried about the potential implications of a French presidential election that remains too close to call. Far-right candidate Marine Le Pen is gaining momentum by vowing to take France out of the euro zone and hold a referendum on European Union membership if she wins. At the same time, US President Donald Trump’s political agenda and his team’s comments on the undervaluation of certain currencies keep rocking markets. … Continue reading

Q&A: Legendary executive Rob McEwen talks about gold mining in golden times

DERRICK PENNER More from Derrick Penner Published on: August 4, 2016 | Last Updated: Rob McEwen, self-described chief owner of McEwen Mining Inc. VANCOUVER SUN Legendary mining executive Rob McEwen knows a thing or two about gold-mining companies, having built Goldcorp Inc. into a powerhouse producer before stepping down as chairman and CEO in 2005. Now, he’s working on building up his next venture, McEwen Mining Inc., with mines in Mexico and Argentina just as gold has hit a rebound. The Vancouver Sun caught up with him at the recent Sprott Natural Resources Symposium to talk about his views on where the rally is going: Q: With your firm, you take the title chief owner. Why is it important for you to spell that out? A: I think it’s very important that people running companies have skin in the game, they have something at risk. They don’t just get a big salary with lots of options and have no investment in the company. It makes you focus on what’s the most important thing a company should be doing, that is building the value for every other share owner of that company. Q: The price of gold is up 25 per cent from its trough, the S&P/TSX Gold Index has bounced back more than 100 per cent, many people have read a lot about the uncertainties out there that are driving this. What’s your view on what got us here? A: There are a number of factors. One, the expansion of money supply by countries … Continue reading

Add Some Stock Warrants To Your Portfolio

March 17, 2016 By Dudley Pierce Baker Editor and Founder Folks, the resource sector is preparing to blast off, again. You will want to be on board as there will be many companies and stock warrants having spectacular gains of 500% to 1000% and more. Don’t forget that you do not want a portfolio loaded down to nothing but stock warrants. I would suggest having a maximum of 5% to 10% of the value of one’s portfolio in stock warrants, possibility slightly more if you are extremely bullish as am I. These stock warrants will be on companies which you like and which have great assets and management and at least 2 years of remaining life before expiring. There are enough interesting stock warrants trading and in our databases which should have you drooling to get started, but  don’t wait too long as I believe we are heading to $1400 gold very soon. If you have received a coupon code from me in the last few months this would be the time to use it. Alternatively, you can use the coupon code of gold and receive 50% off of either my Silver or Gold Subscription, monthly or annual. If you are interested in my Lifetime Subscription, please contact me at and put Lifetime Subscription in the subject line. Look forward to having you join me soon, Dudley Pierce Baker  … Continue reading

MAG Silver Files Preliminary Base Shelf Prospectus

December 23, 2015MAG Silver Files Preliminary Base Shelf Prospectus VANCOUVER, British Columbia MAG Silver Corp. (TSX: MAG; NYSE MKT: MVG) (“MAG” or the “Company”), today announced that it has filed a preliminary short form base shelf prospectus with the securities commissions in each of the provinces of Canada, except Quebec. The base shelf prospectus will allow MAG to offer up to US$75,000,000 of common shares, preferred shares, debt securities, subscription receipts, units and warrants from time to time over a 25-month period after Canadian securities regulatory authorities have issued a receipt for the final short form base shelf prospectus. A corresponding shelf registration statement on Form F-10 will be filed with the U.S. Securities and Exchange Commission (the “SEC”) under the U.S. Securities Act of 1933, as amended, and the U.S./Canada Multijurisdictional Disclosure System at the time of filing of the final short form base shelf prospectus. No securities may be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. A copy of the preliminary short form base shelf prospectus can be found on SEDAR at About MAG Silver Corp. ( MAG Silver Corp. (TSX: MAG: NYSE MKT: … Continue reading

European Investor Olivier Tielens: In a Sideways Gold Market, Explorers Offer the Most Upside

The Gold Report: After flirting with $1,300 per ounce ($1,300/oz) in January, gold has fallen to around $1,200/oz. What happened? Olivier Tielens: Deflationary forces are still leading the game. There’s a 50% chance that we may go to a new low, very probably the final bottom, and a 50% chance gold will trade throughout 2015 in a tight range. TGR: A few years ago, gold rose tremendously after the U.S. Federal Reserve began quantitative easing (QE). Since then, further rounds of QE from the Fed and, more recently, massive QE from Japan and the European Union have not buoyed the price of gold. Why not? OT: QE is not working. Europe is in a depression. The velocity of money continues to decrease and is now lower than for decades. People are hoarding cash, and that’s deflationary. Zero and even negative interest rates continue, and that could help gold because even though gold doesn’t pay interest, at least bullion owners aren’t losing money by holding it. Inflation will arrive after confidence in the central banks fades. Investors will then want out of the U.S. dollar and into gold. When will that happen? Nobody knows, but it always comes like a thief in the night. Or we could have another black swan event, but this is less likely than in 2008 because the powers that be have learned from that, and there is now so much liquidity in the system. TGR: QE and zero interest rates are not helping gold, but they … Continue reading

Where is the Smart Money Going in Mining? Lawrence Roulston's Answer May Surprise You

The Mining Report: When we last spoke in June 2014, you said that gold at $1,250 per ounce ($1,250/oz) was a reasonable baseline price going forward. Do you still believe that? Lawrence Roulston: Yes. Actually, the fact that gold has remained at this level while the U.S. dollar has become so strong is very significant. My preference is to pay less attention to the gold price per se and more attention to specific gold and silver companies that are good investments in their own right. This means companies with smart management teams that are expanding resources, advancing projects toward production, increasing production or doing other things that add value. As the gold price eventually moves higher, such companies will realize bonuses on top of what should already be an attractive return. “Asanko Gold Inc. is on the list of likely M&As in 2015.“ TMR: In the last two years, two independent phenomena have occurred simultaneously: companies have greatly reduced costs, and, as you mentioned, pretty much all currencies have lost value against the U.S. dollar. Taken together, how much has this improved the condition of miners outside the U.S.? LR: In particular, Canadian and Australian miners have benefitted greatly: a 20% boost on the revenue line, which has led to an even larger boost of operating margins. As a result, many companies that were struggling two years ago are now much healthier. TMR: We hear often that it is difficult to impossible for mining companies to raise financing in the … Continue reading