Quote:
quote:Originally posted by gisborne_gold
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?
Interesting, GG. I am not really au fait with the way the Black-Scholes methodology works but I am a little surprised that it doesn't place the value of the warrants at a greater margin above the heads, given (a) that the warrants have two and a half years to run, (b) the rate of increase in the market price of the heads, and (c) the fact that the dilutionary effect of the warrants should already be built into the market price of the heads. (Even allowing for the divs on the heads).