I'm going to add to my previous post to aid those that are not...

I'm going to add to my previous post to aid those that are not familiar with the Citiwarrants.

The price of the warrant is always set at the difference between the PNV share price and the strike price. The strike price is currently about $1 but goes up each week by the value of the PNV SP times the interest rate (currently 8%). So if the share price is $1.50 the strike price of the warrant will rise each week .2308c to about $1.002308. Over a year if nothing changes including the share price, the strike price would rise to about $1.12 (8% of $1.50). In this scenario the warrant price would fall to 38c.

I have done a spreadsheet attached below which shows the comparison of buying 1500,00 shares on market or buying the warrants. You can see that I have assumed the price of PNV will rise fairly consistently every year before reaching $5 in 2028, and the interest rate on the warrant will slowly decline as interest rates fall. I believe these estimates are quite conservative but I may be wrong.


In a different thread ,only eleven of you felt that the SP will be under $2 in 12 months time. So if you are in the majority, you should buy the warrants for a > 72% gain rather than the shares for a >33% gain.

DYOR.