December 28, 2016
By: Dudley Pierce Baker
2016 brought excitement back into the resource shares especially in the first 6 months of the year. Most recently gold, silver and shares have declined substantially but I was able to bank some great gains and hopefully my subscribers followed me into some of these situations.
One position had I bought and still hold are the Northern Dynasty Warrants B.
Northern Dynasty Minerals, NAK and TSX:NDM principal asset property is the Pebble Project in southwest Alaska, USA, an advanced-stage initiative to develop one of the world’s most important mineral resources. and has long been seen as a long term play on the price of gold. Others have recommended the shares including Doug Casey. Interestingly, another newsletter writer recommended sell the common shares in May 2016, too bad for them.
Our view is to always buy stock warrants on companies which we like if their are stock warrants are trading.
The B warrants began trading on June 10th, 2016 and were issued as part of a unit stock offering including one share and one stock warrant. Each warrant is exercisable at C$0.65 and with a 5 year life from issuance.
Buying the stock warrants will always cost substantially less than the common shares and potentially deliver investors with upside leverage of better than 2 to 1 over the gains in the common shares.
In my July 5, 2016 email to my Gold and Lifetime Subscribers,
“….Second, in late trading yesterday, July 4th, I was able to purchase some of the new warrants trading on Northern Dynasty Minerals.
NDM.WT.B – very difficult to purchase at reasonable prices but I had a limit order, GTC in for two weeks or so for .165 and finally got an execution. Yes, yesterday was a holiday in the U.S but by using Interactive Brokers they operate in virtually all of the markets.
This NDM.WT.B has a 5 year life and an exercise price of C$0.65. Back in 2011, the common shares hit a high of around $11 as gold was peaking. If we can another significant move in gold to new highs and much more, the NDM would likely have a great move and these warrants could be a major home run….”
If a subscriber had followed me into this transaction, they should have been able to buy these warrants for less than C$0.20 and earlier in December they hit C$2.00, for a cool 10 Bagger.
Personally, I am still holding my position into the new year.
This is an example of the gains which I am looking for, whether in stock warrants or in common shares.
Check out the chart below and you will probably wished you had been a subscriber.
If you would like to join me for exciting opportunities in both stock warrants AND in resource shares,
let’s get you started now.
Disclosure: Neither Dudley Pierce Baker nor CommonStockWarrants.com is an investment advisor and any reference to specific securities does not constitute a recommendation thereof. CommonStockWarrants.com is an online newsletter providing complete details on all stock warrants trading in the United States and Canada. The information and opinions expressed should not be construed as a solicitation to buy any securities mentioned in this service.