Warrants?

[kiora]

I'm not sure if you're being sarcastic or not - don't know you well enough to judge that yet, but 500 warrants at $0.065 = $32.50 plus $30 brokerage = $62.50. If I decide not to exercise them down the track, that's what I've lost (wouldn't be worth selling them). If I do decide to exercise them at (who knows) say $1.22 and the share price is around what it is now, then I can add an extra 500 shares to my Kingfish holding, for around $600. Which means a few more "bonus" shares at dividend time.

I'm a beginner. I am trying to get my head around my options and weigh up the pros and cons of any action (or inaction) I take. This just seemed like a way to add to my holding without paying market prices.

Of course, I could be blonder than I thought and all of this could be a really bad idea.

If others thought it was a good idea they would have already done it

[777]

If others thought it was a good idea they would have already done it

How do you know they haven't?

[huxley]

How do you know they haven't?

therein lies the risk...

[justakiwi]

therein lies the risk...

I'm sorry but I'm not getting it. How is this any more risky than me deciding to go buy another 500 shares on Monday at the current market price? I would have thought it was actually less risky. Worst case scenario I waste $62.50 (if I bought 500 warrants and didn't exercise them). Best case scenario I end up with an extra 500 shares at a significantly cheaper price than whatever the market price is on exercise day. If I was talking thousands of warrants then yes, it would be pretty risky, but I honestly don't see a huge risk in what I'm thinking of doing.

What am I missing

[stones]

I'm sorry but I'm not getting it. How is this any more risky than me deciding to go buy another 500 shares on Monday at the current market price? I would have thought it was actually less risky. Worst case scenario I waste $62.50 (if I bought 500 warrants and didn't exercise them). Best case scenario I end up with an extra 500 shares at a significantly cheaper price than whatever the market price is on exercise day. If I was talking thousands of warrants then yes, it would be pretty risky, but I honestly don't see a huge risk in what I'm thinking of doing.

What am I missing

I dont think you are missing anything - you seem to have analysed the situation reasonably well. On past history the warrants having been converted to shares get rewarded with a good divi though share price doesnt move too much.