by Travis Johnson, Stock Gumshoe | May 3, 2013 10:08 am
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Thanks for the update. I’ll be watching my ROIC warrants extra carefully now.
Travis This article caused me to go back and read your April article. I tried to look at the specifics on a couple warrants but could not find the strike price or warrant expiration dates, yet alone the information regarding if and how dividends may get factored in. Where can we typically find what warrants are out there and the details about the warrants? Thank you for any education you can provide.
The info isn’t easily collected in any of the usual places, I think I included a chart with the strike and expiration info on most of them in that article, but in most cases you have to read the prospectus to get details. The general policy for all of the warrants is that the warrant will adjust for dividends that are in excess of the dividends paid by the bank right before the rescue hit, and there are other anti-dilutive criteria as well. Most banks cut or suspended their dividends during the crisis so they aren’t at that level yet, though some are close or already above the old dividend. And the expiration date is ten years from the date of that bank’s deal with the Treasury — most are Fall 2018 but a few are later, and I think AIG is 2021.
There are a lot of articles on the warrants out there, many of which include that data or some interpretation of it, but I like to read the prospectus first and even then there are some where the anti-dilutive stuff is not crystal clear. The warrants that are traceable are listed, but the listing rarely comes with any real info other than trading volume and price in places like Yahoo Finance, etc. most trade in very, very low volume so be careful.
Hi, Fellow Irregulars — If you’re as uneducated about stocks as I am, you might have been wondering, “What the devil is a junior mining stock?” I’ve been wondering for some time.
I finally got around to asking Uncle Google, who sometimes is almost as smart as the Thinkolater, and found the following at http://voices.yahoo.com/how-define-junior-mining-company-international-5410267.html :
“Casey’s International Speculator identifies a junior mining company as a small-cap, high-profit company that is sitting on discoveries that could explode its profits, its values – and of course the value of its stock – in a matter of months. In particular, it focuses on gold and silver mining stocks.
A Junior Mining company, as compared to a senior mining company, is one that mines for precious metals (or maybe oil) and relies on its financing from capital markets, and some from private financing sources. A senior miner generates its revenue from its mining operations. Juniors are not unlike other venture capital firms or even small, start up technology companies that have yielded big results for investors, if you invest in them at the right time!”
Thanks Hi Pockets – I am indeed uneducated about stocks and all, so imagine how refreshing it was that you posted what you did. Good information!