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ZeWaffleBaron

08/07/17 1:35 PM

#470 RE: greens12 #468

The warrant exercise price will always remain the same, whatever it was set at when the warrants were issued. The price that the warrants trade for will change, depending on lots of things, including the underlying price of the security. The reason I like the warrants is 1) they don't expire for about 4 years (options that don't expire for a year trade at much higher premiums, 2) they allow you to amplify your earnings. If the share price goes over $2, you will make 1:1 for every cent the share price goes over $2... not a bad price point. You can buy 2-3 warrants for the price of one share of stock. So if the stock price goes over $2, you will make 2-3 times the money for any movement in stock price, for any money you bet at this point. And if the stock does poorly, you still lose all your money, just like we all likely will with our common shares. In the circumstance, I view them as not substantially more risky than the common shares