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Dudley Baker: The RHM Warrant Survey: A Test Question from Martin Weiss
November 22, 2009
The Warrant Report
In this issue:
- The RHM Warrant Survey: A Test Question from Martin Weiss
- The Dirty Little Secrets of Warrants, Options and LEAPS
The RHM Warrant Survey
I'm sure many of you (even subscribers in some cases) still have many questions about warrants. Where do 'they' come from and how long have 'they' been around?
I get this questions all of the time. As confident as I am in the warrant arena, I am always amazed at the lack of knowledge among the public and professionals alike.
A few years back I had the opportunity to have dinner with Martin Weiss, www.MoneyandMarkets.com and www.WeissResearchIssues.com to discuss my then new business, Precious Metals Warrants.
One of the first questions that Martin asked me was, "Dudley, what was the name of the service back in the 1970's that dealt with warrants?"
Of course Martin being a savvy professional already knew the answer to this question and it was a test to see the extent of my knowledge and history about warrants.
Yes, the answer was very easy for me as I actually used this service back in the 1970's myself. The RHM Warrant Survey by Sidney Fried actually dates back to the 1940's and into the early 1980's.
I have purchased as many of the books and materials as possible of Sidney's work on warrants and have incorporated many of the basics of his and several other pioneers on warrants into our Learning Center.
The concept of warrants is so simple I don't understand why investors try to make it so difficult. Think simple, think about call options. We all know about call options don't we?
As a practical matter the main difference is that warrants will trade similar to common shares, whether as call options will be traded on the Chicago Board Option Exchange, (CBOE).
The main objective of both call options and warrants is the same: to increase your leverage. The main difference is all about the Time Factor: call options are usually for measured with a life in weeks or months while warrants are measured in terms of years, and there is one warrant which does not expire until 2017. Pretty Cool!
So readers/subscribers let's always remember to keep this simple and for those new to warrants we encourage you to visit our Learning Center and discover the 'secrets' of warrants and why Martin and I love this game.
The Dirty Little Secrets......
This past week I had an article posted on many of the familiar websites which perhaps will assist with your education.
The Dirty Little Secrets of Warrants, Options and LEAPS
For those readers unfamiliar with all of our services:
• PreciousMetalsWarrants.com provides an online database for all warrants trading on the natural resource companies in the United States and Canada.
• InsidersInsights.com tracks the buying and selling of corporate insiders with a focus on the junior mining and natural resource sectors. Buy and Sell Alerts are issued as deemed relevant based upon our analysis.
There are many great opportunities presented in each of these services and we encourage you to get on board with us soon.
Dudley
Dudley Pierce Baker – Owner/Editor – Guadalajara/Ajijic, Mexico
Lorimer Wilson – Director of Marketing and Contributing Editor – Toronto, Canada
Bruce Ross – Webmaster and Administrative Assistant – Phoenix, USA
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