Quote:
quote:Originally posted by Dough Boy
May have mentioned before that the IFTWB warrants are what I consider a very good long-term investment that will offer superior returns over the ordinary share price in a very sound company, with the following reasoning:
Have a long-term 3.75 years run to exercise
Bought in over last six months at an average price of 79 cents which equates to an exercise price of 429 cents.
So if current SP of 385 cents conservatively appreciates an average 10% p.a. over next 3.75 years then final SP will be 1.43 x 385 = 550 cents. So warrant worth 200 cents.
This equates to an annual return on investment of 28.1% p.a.
Of course would sell out before exercise if warrants run too far ahead of SP based on a similar analysis to above.
Amen and preaching to the converted as far as I'm concerned. Couple of other thoughts to add, if SP grows at the long term historic average of 20% then future share price of $7.65, warrants of $4.15!!!! - I believe this is to be a realistic outcome.