Sandstorm Gold Warrants

By dvolonn, April 8, 2012

I wanted to ask for any advise or insight with my Sandstorm Warrants. I am an American and have the Warrants but was thinking of selling them and buying the stock (SNDXF) which I don’t have any. I was just wondering which is better or if its going to make any difference as I really can’t afford to loose much with this. Thanks for any comments!

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3 Comments on " Sandstorm Gold Warrants"

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Travis Johnson, Stock Gumshoe
Hi David. I personally own both stock and warrants in Sandstorm Gold, in what is now (at current prices) roughly equal portions. I can’t answer questions about personal investment choices or the risks that your portfolio can handle, but I would urge anyone choosing between a stock and a derivative (like a warrant or option) to consider the greater risk and volatility that warrants and options typically carry over common stock — the price moves faster in either direction, and the risk of a total loss is usually higher with warrants than with stocks, and there is less trading liquidity… Read more »

How difficult is it to buy Sandstorm warrants? Thinly traded and easily spooked?

Travis Johnson, Stock Gumshoe
I don’t know if they’re “easily spooked,” but both tranches are thinly traded — SSL.WT.B is hugely out of the money and therefore lower-priced (quite risky, since you’re hoping for a $14+ share price within less than a year — it expires next September). There is sometimes some speculative trading in that when the Sandstorm share price gets active, but there’s a very high risk of it being worthless at expiration. SSL.WT doesn’t expire until 2020 and is in-the-money right now ($4 strike price), so it is far pricier and trades very little. Both are difficult to buy if you’re… Read more »