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

BRICS Create a New International Trade Currency

BRICS Create a New International Trade Currency, the Damage to the Dollar Will be Enormous and the Domestic Economy Will Collapse in a Short Period of Time Amber William April 22, 2018   We are linking to the original article on My Daily Informer, which I saw also posted on 321Gold.com. Great piece so give it a read soon. BRICS Create a New International Trade Currency, the Damage to the Dollar Will be Enormous and the Domestic Economy Will Collapse in a Short Period of Time … Continue reading

Doug Casey on Crisis Investing in Brazil

Editors Note from Dudley Pierce Baker http://CommonStockWarrants.com “One of my top picks has a Brazilian gold property which should be in production in 2018. The shares and warrants have been under pressure recently but I see that potential for outrageous gains of 1,000%, 2,000% or more in the next few years.”   Justin’s note: Brazil is in crisis once again. This time, Brazil’s president, Michel Temer, has been accused of corruption, bribery, and obstruction of justice. When news of this scandal broke, it triggered a huge selloff in Brazilian stocks. The iShares MSCI Brazil Capped ETF (EWZ), which tracks Brazil’s stock market, plummeted 18% in one day. It was the fund’s worst day since the 2008 financial crisis. Most investors now want nothing to do with Brazilian stocks. But we’re not like most investors. We understand crises can actually lead to huge moneymaking opportunities. Casey Research founder Doug Casey has made millions investing in crisis-stricken markets like Brazil. So I immediately called up Doug after I read this story. Below is a transcript of our conversation… Justin Spittler: Doug, what do you make of Brazil’s latest crisis? Do you see a crisis investing opportunity shaping up there? Doug Casey: I’m not sure I’m interested in putting money there right now. But I am interested in Brazil. As a matter of fact, as I speak to you right now, I’m out in the countryside of Uruguay, next door to Brazil. All these Latin American countries, quite frankly, are very problematical. They’re … Continue reading

PennTrade – A U.S. Broker For Canadian Shares & Warrants

February 7, 2017 By: Dudley Pierce Baker http://CommonStockWarrants.com     I am glad to bring to your attention that PennTrade is now available for trading in the Canadian shares and stock warrants. If you are a U.S. Citizen and interested in trading the Canadian shares and/or stock warrants this news will be of great interest to you. It has long been an issue for U.S. Citizens on how to trade the Canadian securities using the Canadian symbols for shares and warrants. I had a long chat today with John Worrell who assures me that PennTrade is good to go and ready to execute our trades. You can get all of the information necessary to open an account, to commissions, etc on their website. PennTrade is now the online trading division of Paulson Investment Company, LLC. Founded in 1970 in Portland, Oregon, Paulson Investment Company earned national distinction as a premier boutique investment bank in the small to mid-cap market, leading 175 public and private offerings and raising over $1.2 billion in financing. Tell them Dudley sent you…. In full disclose here, there are a couple of other firms providing similar services:       Interactive Brokers – this is my personal brokerage firm at the present time. Fidelity Brokers – I have been told that if you have an account at Fidelity and quality to upgrade to their International StockTrading you can trade the Canadian securities.     More choices of brokerage firms is always a good issue so no longer … Continue reading

Trump and a New Gold-Backed Dollar

Trump and a New Gold-Backed Dollar By Nick Giambruno On August 15, 1971, President Nixon killed the last remnants of the gold standard. Since then, the dollar has been a pure fiat currency, allowing the Fed to print as many dollars as it pleases. Removing the US dollar’s last link to gold eliminated the main motivation for foreign countries to store large dollar reserves and to use the dollar for international trade. At this point, demand for dollars was set to fall… along with the dollar’s purchasing power. So the US government concocted a new arrangement to give foreign countries another compelling reason to hold and use the dollar. The new arrangement, called the petrodollar system, preserved the dollar’s special status as the world’s reserve currency. In short, the US government made a series of agreements with Saudi Arabia between 1972 and 1974, which created the petrodollar. The Saudis would use their dominant position in OPEC to ensure that all oil transactions would only happen in US dollars. And the US would guarantee the House of Saud’s survival. It worked… for a while. The petrodollar filled the void after the US severed the dollar’s last link to gold as the main prop to the dollar’s status as the world’ premier reserve currency. So far, the petrodollar has lasted over 40 years. However, the glue is losing its stick. I think we’re on the cusp of another paradigm shift in the international financial system, a change at least as fundamental as what … Continue reading

CAN NEW PRESIDENT MAKE THINGS BETTER FOR THE PEOPLE?

Where is this economic boom that Former President Obama and his administration had taken so much credit for? The Obama Administration, with the assistance of the Federal Reserve and Company, deliberately kept the U.S. economy from creating any growth at all.  The money that flowed from the Federal Reserve, over the last 8 years, had a direct pipeline that flowed only into Wall Street Investment Banks. The American people were sold this false bill of sale that “Quantitative Easing” was going to make lending money to “Main Street America” easier to access. They promised that there would be a boost in hiring which would, in turn, increase aggregate demand and thereby reflect a newly stimulated economic growth! This QE effectively down-sized the middle class into minority status.  The largest growth has occurred within the low-income category.  Despite the stock market reaching near all-time highs and real estate bubbling over once again, there are now 45 million Americans on food stamps.  This number is at an all-time high.  People are feeling poorer today than ever, and with sky rocketing real-estate prices those who do not own a home cannot afford to buy anymore! This massive disconnect is expanding exponentially. The velocity of money is the number of times that currency is turned over to purchase domestically- produced goods and services.  One can see, as in the chart below, that the velocity of money has been steadily decreasing.  There are less transactions occurring by individuals in our economy.  One can see that … Continue reading

Investors Are Pouring Into Gold

By: Luzi-Ann Javier February 2, 2017, 10:17 AM CST February 2, 2017, 2:17 PM CST The Federal Reserve has emboldened gold bulls. Prices and trading volumes surged Thursday on call options giving holders the right to buy bullion at higher prices. On Wednesday, investors poured $413 million into SPDR Gold Shares, the largest ETF backed by the metal, recouping almost half of the money that exited last month. The Fed, which kept interest rates steady this week after a two-day meeting, gave little clue on when it might next tighten monetary as officials grapple with the uncertainty created by a new presidential administration. Policy makers in December telegraphed three rate hikes for 2017. Gold prices have rebounded about 6 percent this year, helped by a weaker dollar and demand for the metal as a haven, after posting the worst quarterly loss since 2013. “There is no imminent concern of a Fed rate hike, and that gleams the green light on for the metals to move higher,” David Meger, a director of metals trading at High Ridge Futures in Chicago, said in a telephone interview. “The weakening dollar and the lack of concern of a Fed interest-rate hike, and slightly higher inflationary numbers in the market, all support the precious metals.” Gold futures for April delivery advanced 0.9 percent to settle at $1,219.40 an ounce at 1:41 p.m. on the Comex in New York, after touching $1,227.50, the highest for a most-active contract since Nov. 17. Call options giving holders the … Continue reading

How To Buy Shares and Stock Warrants On Canadian Companies

How To Buy Shares and Stock Warrants On Canadian Companies January 31, 2017 By Dudley Pierce Baker http://CommonStockWarrants.com Most of the readers here are interested in the resource sector which includes the junior mining companies as well as oil and gas companies. My opinion is that we will see a very positive tone for the next few years for gold, silver and copper and look for substantially higher prices with many great opportunities for investors. Since most of these resource companies are Canadian companies the issue for some investors is ‘how to buy the Canadian shares or perhaps the stock warrants on Canadian companies?” Also, I frequently receive emails asking if the traditional brokerage firms will trade the warrants? Allow me to clarify this situation for all investors: Canadian Citizens You are probably asking what is the big deal? Canadians can easily purchase the shares and stock warrants trading on Canadian companies through their brokers, no problems here. U.S. Citizens Most of the Canadian shares and about 60% of the stock warrants trading on the Canadian companies have been assigned U.S. symbols which facilitates the trading in the U.S. Most Canadian companies frankly do not really care if their stock warrants trade and it is up to a U.S. market maker to establish a market (not the company) and assign a symbol for trading. The stock warrants on the Canadian companies are not and will not be registered in the United States, however, this is not a problem. Investors are … Continue reading

Canadian Zeolite | Operations Ramp-Up at Bromley Creek Zeolite Quarry

October 12, 2016 Vancouver, British Columbia, Canadian Zeolite Corp. (the “Company”) (TSX.V: CNZ) (OTCQB: CNZCF) (FSE: ZEON) is pleased to report that crushing and screening equipment has arrived at the Company’s Bromley Creek zeolite quarry to crush and screen approximately 10,000 tonnes of zeolite from previous blasts at the present face of the quarry for shipment to the Kamloops facility where it will be processed and sized for specific customer markets and orders. Canadian Zeolite’s CEO will meet with the Operator and their Qualified Person at the Bromley Creek quarry to lay-out a plan for an additional drill and blast. This will ensure sufficient inventoried zeolite will be available throughout the winter months to meet increasing customer demand. Ray Paquette CEO of Canadian Zeolite states “the impact of natural zeolites in environmental applications is receiving global recognition. Products based on natural zeolites are applied in environmental fields including animal feed, composting odor control, water purification, fertilizer carrier, plant substrates, wastewater treatment and aquaculture. Our goal is to produce innovative products designed to solve environmental issues.” Canadian Zeolite is an environmentally friendly Green Tech company. We are operational at the Bromley Creek quarry and have a competitive advantage in the world of zeolites given our product has been tested, applied, and exceeds the standards of specific markets. Canadian Zeolite continues to move forward with the Bromley Creek quarry, which is fully permitted to extract up to 50,000 tonnes of zeolite on an annual basis. The Company is not basing its production … Continue reading