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FAQ's
(Frequently Asked
Questions)
How do you describe your
Service?
We see our service,
Precious Metals Warrants, as a
market data service in essence, we provide specific data to assist investors interested in
investing in warrants on the commodity and natural resource stocks trading in the U.S.
& Canada. We are also establishing ourselves as a valuable resource
for investors seeking information on warrants thru our LEARNING CENTER.
When do I receive
my first issue?
Never! All of
our information is presented to you on our website. It is updated every Friday and available for
download. We also send an E-Blast to our subscribers to notify them of any changes to the
Warrant Data as we get the news.
Can you buy the
warrants for me?
No, we are not
brokers nor do we provide investment advice. We provide you,
the investor, the data you need so that you along with your
investor advisor have the complete details on
warrants to assist with your investment
decisions.
Will my brokerage
firm buy the warrants?
To the best of our
knowledge, most brokerage firms will accept orders to buy and sell
the warrants, even those on the Canadian Exchanges. The O-T-C
Market assigns
a symbol to the Canadian stocks as well as to
the warrants and this facilitates them
being traded in the O-T-C Market. In
the Paid Subscriber Section of
our website, we provide you with the details of placing an order
and "exactly" what to say to your broker. Also, see, "
How to Trade" for more information on brokerage firms
and placing your
orders.
Do you make any
recommendations or specific warrants to buy?
No! We do not
make any recommendations and have been advised that most of the
Canadian warrants are not registered in the United States and that
any recommendations thereon, would not be
advisable.
We do however; provide you
with our Top Ten Leveraged Potential
Warrants. This is merely a mathematical calculation and not
a recommendation to purchase these warrants and we update this list
each Friday after the markets
close.
What
software do I need for access your Warrant
Database
Due to the volume
and detail of our data, our Warrant Database is maintained in Excel
spreadsheets. Excel is a product of Microsoft and is included
in the Microsoft Office
software. Unfortunately, many individuals
do not have Excel installed on their computers therefore, we
provide the following links for FREE downloads of Excel so you can
access
our Warrant
Databases. FREE downloads of the
Excel Viewer and also a FREE
download from Open Office for the use of
Excel.
I have a Mac
Computer. Can I use your Service?
Currently our
Warrant Detail is furnished only in an Excel (Microsoft) format
although recent MAC's do include Excel. If your MAC does not have
Excel it will be necessary for you to have Excel before you can
access our data. We provide a link for FREE downloads of the
Excel Viewer and also a FREE Download from Open Office for
Excel users.
Can I adjust the
Printing size of your Warrant Details?
Yes, when you go to
our Warrant Details, you will see the Excel Spreadsheet
symbol.
When you click on
the symbol, you are asked, "do you want to open or save this
file?"
We would suggest
that you Save the file and then on your computer you can adjust
the
printing
options. For most of you, go to the Print Preview,
Setup and make your
adjustments.
Do I have to
Exercise the warrant or can I just sell it?
The warrants are
purchased and sold just like the underlying common stock of
the
respective company. In our opinion, we
cannot foresee the circumstances where it would
ever be beneficial to the individual investor to
exercise their warrants. When you feel the time is right; you
merely sell your warrants just as you would sell the common
stock.
Expiration Date
This is very
important, so read
carefully.
If your warrants are "in the money", i.e. the
common stock is trading above the exercise price of the warrants
and the warrants are approaching the expiration date you must take some
action.
Unlike, call options, which if "in the money"
and the options expire, the value of the option is placed
automatically into your brokerage account, right? With warrants, this is not the
case!!
You must sell your position before the
expiration date, or you will receive
nothing. Also, if you hold warrants in a
company and the company makes an offer for the warrants, via an
early buy back, you must, must, must do
something.
The message here is to be alert as to the
news, events and approaching expiration date of any warrants which
you hold.
If I do not
Exercise the warrants and the warrants are "in the money" on
expiration date will the funds be placed into my
account?
Definitely
NOT. You the
investor MUST do something or the warrant will be totally
worthless. You must either sell the warrants before the expiration
date or exercise them (however, we can
not see the circumstances where this
would ever be beneficial to the individual investor).
Also,
see above, Expiration Date for more
info.
Can you sell OK up to day before
expiry?
Yes! Unless a
company has a specific early call feature there would
be no limitation on when you can sell up to the expiry
date.
The warrant holders are
usually treated well in a takeover situation. The most recent,
Yamana Gold bought out Desert Sun on a stock for stock exchange and
the old Desert Sun warrants are now traded as Yamana Gold warrants
with the same expiration date. Another example was the buyout
of Bolivar Gold was for cash and the warrants holders were treated
well, even thought some of the warrants were still 'out of the
money'.
One important thing to
remember is that many of the warrants of virtually any of the
companies in our database are owned by what we call the 'big boys':
mutual funds, merchant banks, private investors, etc. which
acquired the warrants on the initial financial arrangement for
which the warrants were issued. They will want to be treated fairly
also on any buyout of the company and the amount to be received for
the warrants and will have much more influence that the
individual
warrant holders to get fair
treatment.
Warrants are usually issued in connection with a
financing or stock offering. The companies make this decision so we
as investors merely take what comes our way.
As you can see in our Warrant Database several companies
have 2 or 3 different warrants trading with different exercise
prices and expiration dates giving investors a decision to make as
to which, if any, of these warrants to buy.
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