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Posted On: 01/05/2020 12:25:42 PM
Post# of 32977
Buckle up VERBW Warrant Holders
I just checked!
There is no Reuters or Morningstar reports for VERBW
But I read on a message board, it's the same company as VERB so the reports for VERB should apply
You know, as VERB goes up, so does VERBW
Morningstar now says VERB is worth $4.14
When they came out with their first report, VERB gapped up and stayed up
Historically VERBW has been about 1/4 - 1/3 of VERB
I think when I last checked it was closer to a 1/3 but everyone should do their own DD as Warrant investing can be complex
1/3 of $4.14 would be $1.38
But wait, there is more...
The 1/3 isn't a rule, it's just what it's been
Once the warrant reaches the strike price, the warrant is worth that plus the value over the strike price relative to the sp of VERB
Using easy numbers, let's say the sp is $10 and the strike price is $5.
You could exercise the warrant if you owned it and make $5 minus your initial investment OR you could sell the warrant as a discount to the then current sp of the company stock. That would be $9 something. It wouldn't be $10 because someone would just buy the regular stock, but it wouldn't be $9 either as someone would be making a buck on every share and you wouldn't want to give that much away so you wouldn't have to convert.
Either way, the warrant would never be 1/3 of VERB when it gets close to the strike price or VERB exceeds it
Watch for the VERBW % to VERB to accelerate the closer it comes to the strike price and beyond. Accelerate meaning getting closer to 100%
Right now it's 26.7%
It's likely to go to +90% when the above happens
As previously mentioned, do you own DD on warrants. They can be complex when determining the value and the value will be different for everyone depending on external factors like interest rates.
I just checked!
There is no Reuters or Morningstar reports for VERBW
But I read on a message board, it's the same company as VERB so the reports for VERB should apply
You know, as VERB goes up, so does VERBW
Morningstar now says VERB is worth $4.14
When they came out with their first report, VERB gapped up and stayed up
Historically VERBW has been about 1/4 - 1/3 of VERB
I think when I last checked it was closer to a 1/3 but everyone should do their own DD as Warrant investing can be complex
1/3 of $4.14 would be $1.38
But wait, there is more...
The 1/3 isn't a rule, it's just what it's been
Once the warrant reaches the strike price, the warrant is worth that plus the value over the strike price relative to the sp of VERB
Using easy numbers, let's say the sp is $10 and the strike price is $5.
You could exercise the warrant if you owned it and make $5 minus your initial investment OR you could sell the warrant as a discount to the then current sp of the company stock. That would be $9 something. It wouldn't be $10 because someone would just buy the regular stock, but it wouldn't be $9 either as someone would be making a buck on every share and you wouldn't want to give that much away so you wouldn't have to convert.
Either way, the warrant would never be 1/3 of VERB when it gets close to the strike price or VERB exceeds it
Watch for the VERBW % to VERB to accelerate the closer it comes to the strike price and beyond. Accelerate meaning getting closer to 100%
Right now it's 26.7%
It's likely to go to +90% when the above happens
As previously mentioned, do you own DD on warrants. They can be complex when determining the value and the value will be different for everyone depending on external factors like interest rates.
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