Common Stock Warrants

Why warrants are the worst of wagers     First a note from Dudley Pierce Baker, Founder-Editor of Common Stock Warrants. The title of Mickey’s article caught my attention and at first I was greatly upset. But Mickey, a geologist, is focusing on warrants issued in connection with private placements and I can agree with many of Mickey’s comments. With stock warrants, like options, or LEAPS, it is all about the underlying company. If a company does not execute on its plans or the markets do not cooperate, it is impossible for these financial instruments to increase in value. Here is Mickey’s closing comments on his article (below). “….I will still consider a financing that features warrants but it must be a compelling story with a group of strategic investors who are demonstrably committed to the company and an orderly market that responds positively to exploration success.  Otherwise, for any story I like, I can purchase free-trading shares on the open market.” Mickey Fulp Monday November 25, 2019 15:50 Kitco Commentaries | Opinions, Ideas and Markets Talk A warrant is a common financial instrument designed to entice speculators’ participation in a company’s private placement. It grants the participant a fixed price option to acquire another share in the company at a future date. Private placement units commonly consist of a share and a half or full warrant with a one- to a five-year expiration date.I opine that a warrant is a financial instrument that in the vast majority of cases has zero value. … Continue reading →