The Speculative Merits of Common Stock Warrants

February 26, 2019 By: Dudley Pierce Baker There are days, and this is one of them, when I feel like I’m preaching to the choir about the profit potential of   investing in common stock warrants. It’s a small choir of successful investors, but there are few people in the pews paying attention to my sermon. The granddaddy of investing in stock warrants was Sidney Fried, who died in 1992 at age 72. He was active from the 1950s to the 1970s, publishing a warrant survey newsletter, “The RHM Warrant Survey”, and writing many books about warrants — all of which I own and have studied for many years. Despite his towering expertise about stock warrants, Fried was puzzled and frustrated that otherwise savvy investors ignored stock warrants. Today, I am an echo of that frustration. In his “The Speculative Merits of Common Stock Warrants”, published in 1949, Fried wrote: “…with potential profits and potential losses so great it is a source of wonder that so little understanding of the nature of common stock warrants exists not only among the investing ‘public’, who might be forgiven this sin, but even among the many ‘professionals’ of the business upon whom the ‘public’ depends for information and guidance.” The news of the past few years reminds me of Fried’s frustration. Warren Buffett made another half-billon or so because he invests in common stock warrants. This time the warrants were with General Motors (he barely broke even here), but he made a bundle exercising … Continue reading

Interactive Brokers | Stock Warrants

February 24, 2019 Dudley Pierce Baker       Interactive Brokers is my go-to brokerage firm as they will execute trades in the United States or Canada as well as other exchanges in the world. Many of the warrants trading on the resource companies and marijuana companies trade on either the Toronto Stock Exchange (TSX), the Toronto Venture Exchange (TSXV) or the Canadian Stock Exchange (CSE). If I discover a warrant trading which is not yet in the Interactive Brokers system, I notify them and they add that warrant asap so that I and others can trade. If you are a U.S. investor you may find your brokerage firm will not allow you to trade the Canadian securities (unless they have a U.S. assigned symbol). Most of the Canadian shares will have a U.S. assigned symbol and perhaps 80% of the warrants have an assigned symbol facilitating trading in the United States. For me I don’t want worry about, will they or want they, handle my trades. I know there are other firms, i.e., PennTrade which also has a great system and allows for U.S. and Canadian trading. For more information on warrants, visit my website and download your Free copy of “The Stock Warrants Handbook, Your Personal Guide To Trading Stock Warrants”. Good Trading, Dudley … Continue reading

How to trade with warrants | Futures Magazine

April 1, 2010 By Dudley Pierce Baker Editors Note: This is a re-visit of an old, yet timeless, article on stock warrants. Nothing has changed with warrants and the opportunities are endless as we now have warrants trading in all industries and sectors including resources, marijuana/cannabis, pharmaceuticals, biotechnology, etc., some with expiration dates of 5 years or more. My contact info which was on Futures Magazine in the original article has changed, but otherwise, all is correct. Read the entire article on Futures Magazine or below: Many traders are familiar with call options and have spent many years and study hours learning strategies to employ them in the markets. Warrants, however, are still a little known and little-understood investment vehicle, even after 80 years of availability. In 1949, Sidney Fried wrote “The Speculative Merits of Common Stock Warrants.” In it, he captures the profit potential of these instruments. He states: “Common stock warrants turn in the most spectacular performance of any group of securities…. The speculative potentialities of common stock warrants are enormous…. With potential profits and potential losses so great it is a source of wonder that so little understanding of the nature of common stock warrants exists not only among the investing public who might be forgiven this sin, but even among the many professionals of the business upon whom the public depends for information and guidance.” Sidney Fried’s observation in 1949 remains relevant today. Most investors and analysts do not take the time to understand the potential … Continue reading

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

What’s The Fascination With Football? Pre-Game or Post-Game Reading Suggestions

I get it, today is the big day for football fans but when the markets open in the morning thoughts return to which markets are hot and which are not. We have some great articles below for your reading and yes, I am bullish on the commodity/resource sector as are others. It seems reasonable that this is the time to be an aggressive investor in this sector for the next few years. Late comers will be paying substantially higher prices for shares/stock warrants, but it is your choice, now or later. Look at this chart from our friends at CaseyResearch.com, which should motivate you to be invested now as the entire commodity sector is at its lowest in decades relative to the S&P500. For me, there is only one way to play this ‘game’ by investing in quality junior mining companies and/or long-term stock warrants trading on those companies. If you are not familiar with stock warrants, you can receive The Stock Warrant Handbook for FREE by visiting, http://CommonStockWarrants.com along with more freebies. As well, many investors are finding great opportunities with warrants on the U.S. stocks in other sectors, bio-techs, pharmaceuticals, banking, blank check companies, etc. Remember that only 25% or so of my personal portfolio is in stock warrants, the balance are common shares in the junior mining companies and I am on the hunt for new additions to my portfolio.There are many interesting opportunities in stocks as well as the stock warrants available today, so if you … Continue reading

This Weeks First Trade Setup

January 15, 2019 It’s hard not to get excited when we kick start the week with a winning trade within the first 2 hours of trading. Our proprietary price spike trading strategy that has generated 6 winning trades before the opening bell for the last 6 days in a row.   Also, what is really exciting is that we have had 5 winning Gap Window Trades in the past 6 days as well. that’s 11 winning trades in 6 days and no losing trades! RECENT MEMBER COMMENT These daily emails have helped immensely. This is the best and most practical service I’ve used in the 6 years I’ve been trading. Thanks, Ben Jan 14th 2019   Housekeeping Notes: Please note we are in the process of upgrading this trading newsletter to become a full trading suite for long-term investors, swing traders, and day traders complete with our live updating trading charts, analysis, and signals.  The trades in our portfolio only represent ETF swing trades and not our price spike, gap window, or cycles based trade setups, but all trades will start to be posted and tracked in their own areas of the site once we complete these upgrades for you. Over the next 30-60 days, there will be incredible value added to the service which you will not find anywhere else. The analysis, tools, and trade setups will improve the way you see the markets and trade no matter what time frame your focus is on (investor or active trader). Exciting stuff and … Continue reading

Are Global Stock Markets About To Rally 10 Percent?

ARE GLOBAL STOCK MARKETS ABOUT TO RALLY 10 PERCENT? January 14, 2019 Technical Traders Ltd. is issuing new analysis which indicates the US and global markets may be poised for a dramatic upside price swing over the next couple months.  Recent events have driven asset class values to new valuations that may change the dynamics of markets for a few months.  Prior to August/September 2018, many traders were fearful of the expectations of the US Federal Reserve, Global Trade Issues and the US Elections. Combine this with the end of the year liquidity issues and the threat of a US government shutdown over the wall funding and we have almost a perfect storm brewing for uncertainty and fear. Now, it appears, our custom global market indexes are showing signs that a bottom may have formed over the past few weeks and that the global equities markets may be poised for an upside move in the range of +10% to +20% over the next 2-4 months. “What changed over the past month?”, you might be asking?  Valuation levels have changed.  The chart below is a Weekly chart of our Custom Smart Cash index.  We use this as a measure of global equity market valuation and to determine if and when pricing levels are changing in terms of total market capitalization.  We can see from early 2018, the global markets peaked and began to move lower.  Even though the US markets pushed higher throughout this time, the total global markets continued to … Continue reading

Kootenay Silver Recommended By Dudley Baker – Ellis Martin Reports

Dudley Baker of Junior Mining News Recommends Kootenay Silver (TSX-V:KTN/OTC:KOOYF)   In this segment of The Ellis Martin Report, Dudley Baker opines opportunities in the precious metals sector including Kootenay Silver and more! .Click on Video Above or Listen Here:     … Continue reading

Silver Starts A Breakout Move Higher

SILVER STARTS A BREAKOUT MOVE HIGHER December 31, 2018 Watch Silver, folks. This quiet shiny metal is starting a move that could be very foretelling of global market concerns and risks. Early on December 26, 2018, Silver broke through recent resistance, to the upside, with a relatively large 2.8%+ upside move. Why is this so important to traders? Because Silver is the “sleeper metal” that is typically the last to react to global economic concerns. Once Silver starts to move to the upside with a renewed bullish trend, we believe this move would indicate that bigger players are starting to accumulate Silver as a safe haven for future economic concerns/crisis events. This Daily chart of Silver shows the December 26 upside breakout move. We can clearly see the breakout above $15.00 and the historical resistance just below $15.00. This move is extremely important in the context of the total risk play that has recently played out through the past two months. Take a look as how quiet the Silver market has been over the past few months. Take a look at how Silver reacted only moderately to the recent market selloff and Fed statements. There was no real “fear” exhibited in the metals markets or in Silver over the past 60+ days. Yet, today, there is some real fear that is playing out in the price of Silver. This next Weekly Silver chart helps us to understand the total scope of this move and what we could expect to see … Continue reading

Santa Gives You $10,000 For Christmas – Do This Now!

With Christmas behind us and assuming you had been a good boy or girl, Santa delivered to you a check for $10,000. Of course, to some investors, $10,000 is chump change and no big deal,
 but to others, $10,000 is a lot of money. However, ‘what if’ that $10,000 has the potential to become $100,000 or more? 
This is what we commonly refer to as a “10 bagger” in the markets. Now we’re talking about some nice money to all investors. As Santa’s helper this year I am going to give you some suggestions ideas as to how to spend this $10,000. Everyone reading this are no doubt interested in the resource sector which is, in my opinion, the best contrarian play in the markets right now. Gold, silver, uranium and perhaps base metals are expected by many experts to be poised for a good, if not, great 2019. Santa Says, ‘this would be a great time to be invested in the resource sector’. Who’s to argue with Santa and as his helper, I am going to suggest the following 
method of allocating your new-found monies. Never go ‘all in’ on only one investment, but rather allocate, in this case, your $10,000 to a minimum of 6 to 10 companies of your choice. There are many great opportunities with gold, silver, uranium companies, etc., selling on the cheap right now, many of which could be 10 baggers or more. If you can find companies that you like and that have … Continue reading