Footsie
What kind of volumes did you buy (obviously worth boasting about)
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Footsie
What kind of volumes did you buy (obviously worth boasting about)
Well IFT gave me some for free!!! Unfortunately not enough so I topped up at 91c sometime in the past 12m I think.Quote:
quote:Originally posted by Footsie
i bought my warrants at 75c back in late 2005
sorry just felt the need to boast!
:D:D
There is something up with IFT. The SP movements today were unusual.
Buyers at $5.61.
If there is something in the behaviour then we could be in for a few interesting days ahead.
Spotted this one too. Average email update and then this price movement.
8 minutes in and buyers at 5.65
This never ceases to amaze me; heads @ $5.7, warrants at @ $2.3.
A massive 10c rise in heads predicted.
Caesius are you referring to the relationship between the warrant price and heads price?
One could equally predict a drop in the warrants to bring things back into alignment?
Gisborne Gold
You are forgetting sbout the cost of capital on the leverage. Money is no free. The warrants are significantly underpriced at $2.30.
On confirmation that the head SP will hold at these levels then the warrant will jump approx 15 cents before close today (or there abouts).
Thanks Toddy. There wasn't a lot of science in my previous post, I hadn't quite understood what Caesius was getting at and was hoping for a clarification as to what it was that was amazing.
Intuitively I would have said the same as you, that the warrants are undervalued relative to the heads but I hadn't got as far as doing a valuation calculation to substantiate it.
OK I took a proper look at what Black-Scholes might give me as a value for IFTWB.
If I adjust for the IFT dividend yield and the dilutionary effect of the warrants I calculate a valuation for IFTWB in the $2.12 to $2.20, which is below current buy bids which sit at $2.34. Is IFTWB in fact over-priced, contrary to what we've been saying?