Forum Archive Index - April 2004

["Paul ??" <bluecod3@hotmail.com>]

As I understand it, the NZX board will list options for several of our blue 
chip stocks in May.  In the interim, I wonder if the newly listed Kingfish 
warrants (KFLWA) provide leverage opportunities in the same manner as 
options.  For example, one warrant (I assume equals 1000 shares of the 
underlying stock KFL) would cost you about $150.  Because of buy and sell 
brokerage rates of about $50, breakeven for these warrants would be $0.20, 
or if the exercised, $1.20 for the stock.  Given the long expiry dates for 
the warrants, it’s probably a good bet that they should be in the money at 
some stage before expiration (you think).  In addition, as the underlying 
stock increases, the value of the warrant should theoretically increase.  
Any thoughts on the use of kingfish warrants to generate leverage?

_________________________________________________________________
There’s never been a better time to get Xtra JetStream @  
http://xtra.co.nz/jetstream


----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/chat/forum/