Warrants I'll keep it simple. If you think V
Post# of 32649
I'll keep it simple.
If you think VERB will be a home run over the next 4 years and if it is not you can afford to lose your $5k.....Then warrants are for you.....swing for the fences.
What is a home run.....let's call it >$10. If $50 you hit the home run that won the Series.
Now if losing $5k would make you suicidal.....or your wife would divorce you....enough said. Buy stock.
Don't get your mind cluttered by capital gains concerns, dividend dreams or cost to exercise the warrants for stock.
With VERB's good fortune you will sell the warrant to a willing buyer for the stock price at the time, minus $3-4. If VERB has bad fortune, subtracting $3-4 gives a negative number....don't despair overly as you can't get less than zero.
If you are indecisive but want to dip your toe in the water I suggest $2.5k for stock and $2.5k for warrants.
From some perspective the smartest guy in our community just plunked down $30k+ for warrants at these prices...say 35cents. Guessing that he is already wealthy and expects to get much richer from VERB/W. However he can take a loss if lightning strikes (or doesn't strike).