You can buy or sell as many warrants as you want, I'm not sure of your concern. You can buy 150,000 shares for about $225k or 150,000 $1 warrants which give you the same exposure for $75k. If the shares go to (say) $5 in five years then the $225k will become $750k and the warrants will become (note: this is hard to calculate as I don't the know the interest rate or the PNV share price every day over the next 5 years) approximately $400k-$500k.
There is no more liquidity risk in the warrants than there is in the shares - Citi just go into the market to buy the underlying and then effectively charge you 8% p.a. for doing so.
Either way with the physical shares at $5 you have more than tripled your money and with the warrants you have multiplied by about 6.
Of course you have to be a believer in the stock for this to work.
PNV - Banter and General Comments, page-9860
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Last
$2.04 |
Change
-0.030(1.45%) |
Mkt cap ! $1.409B | |||
| Open | High | Low | Value | Volume |
| $2.09 | $2.11 | $2.03 | $1.727M | 838.3K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 5 | 299194 | $2.02 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.04 | 1559 | 1 |
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| Last trade - 16.10pm 15/11/2024 (20 minute delay) ? |
| PNV (ASX) Chart |