I think a lot of people are interested in the topi
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Posted On: 02/19/2021 9:20:51 AM
I think a lot of people are interested in the topic
There have been people that have sold warrants to buy stock
There have been people that sold stock to buy warrants
There are people that only buy stock
There are people that only buy warrants
There are people that look at many factors of warrants before making that decision. There are others that just go on gut.
I own both warrants and stock. Before I bought the warrants I looked at the stock price, warrant price, days to maturity, gearing, interest rate, volatility and my favorite average daily volume
It would be hard for a lot here to swap stock for warrants since warrants are low volume
I did think about selling my warrants as interest rates are so cheap, it's a better risk ratio for me if I wanted that kind of leverage but I am not a fan of borrowing money to invest. Warrants is a different way of getting leverage without borrowing, but comes with risk.
Our example of $10 makes buying warrants or stock an easy decision. Even better if you use $50, but there are no guarantees.
Pick any stock and as a harder example. Say the warrant exercise price is $100. Warrant price is $1 and the stock prices is $10 and there are two years left. Would people be buying warrants? I guess it depends on the stock potential.
The example above make Verb warrants seem more attractive as the sp is 2/3 of the way to the warrants being in the money and then you just need it to go up more to your original warrant investment price to break even. So right now about $4.
When/If Verb's revenues start doubling ever year, than some would be kicking themselves for not buying warrants or stock. The potential definitely here and outside of the current investors, most only know a fraction of it.
Which leads me to one point I want to make. How does a company like Verb explain it all in one paragraph, one video or one 20 minute presentation to new investors. Seems a daunting task and not call the cards have been revealed.
Anywho, back to work.
There have been people that have sold warrants to buy stock
There have been people that sold stock to buy warrants
There are people that only buy stock
There are people that only buy warrants
There are people that look at many factors of warrants before making that decision. There are others that just go on gut.
I own both warrants and stock. Before I bought the warrants I looked at the stock price, warrant price, days to maturity, gearing, interest rate, volatility and my favorite average daily volume
It would be hard for a lot here to swap stock for warrants since warrants are low volume
I did think about selling my warrants as interest rates are so cheap, it's a better risk ratio for me if I wanted that kind of leverage but I am not a fan of borrowing money to invest. Warrants is a different way of getting leverage without borrowing, but comes with risk.
Our example of $10 makes buying warrants or stock an easy decision. Even better if you use $50, but there are no guarantees.
Pick any stock and as a harder example. Say the warrant exercise price is $100. Warrant price is $1 and the stock prices is $10 and there are two years left. Would people be buying warrants? I guess it depends on the stock potential.
The example above make Verb warrants seem more attractive as the sp is 2/3 of the way to the warrants being in the money and then you just need it to go up more to your original warrant investment price to break even. So right now about $4.
When/If Verb's revenues start doubling ever year, than some would be kicking themselves for not buying warrants or stock. The potential definitely here and outside of the current investors, most only know a fraction of it.
Which leads me to one point I want to make. How does a company like Verb explain it all in one paragraph, one video or one 20 minute presentation to new investors. Seems a daunting task and not call the cards have been revealed.
Anywho, back to work.
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