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Re: None

Wednesday, 05/01/2019 12:34:14 AM

Wednesday, May 01, 2019 12:34:14 AM

Post# of 192127
I know this isn't the place to ask and only semi-topical since warrants are being discussed but I don't see the point of choosing the warrant over the stock, unless you feel that you'll be in a better financial position in the future when the time comes to exercise the warrant, than you are now.

Suppose you feel this stock will hit $50. So tomorrow you can buy a pile of stock at say, $2.50, or the warrant for say, $.90. When the stock hits $50 down the road, those who bought the stock will pocket $47.50 per share if they choose to sell, whereas the warrant purchaser will pocket $50.00 minus $.90 minus the strike price. Considerably less profit than owning the stock outright.

It seems like you're buying a reservation to purchase the stock down the road for ultimately less profit, so if you have the dry powder now, you should just buy the stock, but if you don't have it now but foresee having it down the road, the warrant gets your foot in the door.

I'm probably coming off ignorant but I can't find a properly worded explanation anywhere online. TIA.

September 2018 - called the gold bottom at ~1200/oz

APRIL 26 2019 - CALLED THE VERB BOTTOM AT $2

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