Merrill Lynch World Mining Share Discussion Threads

[mcfly79] 05/4/2006 20:13

Thanks Hectorp,

I've just looked at the NAV daily statements and they are now showing a diluted and undiluted NAV. I assume this is showing the forecast effect of the warrant conversion.

The difference betwen the diluted and undiluted figures will increase as the share price increases and I guess it is the diluted NAV that the share price is more closely going to track.

Doesn't this mean that the shareprice of MLW is not going to fully relect the increase in shareprice of the underlying shares.

[hectorp] 05/4/2006 19:54

Mcfly no that does not apply to warrants of Funds.

[hectorp] 05/4/2006 19:53

Oh I think that is good advice Boad. Peeps... watch her WHEELS.
all the best
H.

[boadicea] 05/4/2006 19:51

I bought MLWT (the MLW warrants) as a replacement for MLW when I cashed in a 4-bagger profit. If they become worthless I shall not have lost much relatively speaking and I retain a foothold in the share.
However, I feel a word of warning is probably timely for those who think warrants are the best thing since sliced bread. In rising markets, warrants will normally produce a much larger profit than the underlying stock. When the market falls it works the other way too and they may eventually expire without any value being realised.
That said, at least you won't have a margin call so the most you can lose is the cost of the warrant.

[mcfly79] 05/4/2006 19:39

Great day!

Can anyone help me with how MLW will account for the warrants. Will they now have to start accruing the dilution effect of the forecast coversion of the warrants, and reduce the MLW NAV accordingly.

Thanks

Martin

[coincall] 05/4/2006 17:23

arja,

This afternoon on Bloomberg, Credit Suisse First Boston predict more rises for mining stocks for this year. Looks like tomorrow will be good for MLW & even better for MLWT.

I hope this will help,







Traded on NYSE

[trader horne] 05/4/2006 16:55

Riser,
see the excellent ADVFN warrants thread code WT. I've been riding RSSA until MLWT came along, value has trebled so far.

[arja] 05/4/2006 16:54

Does anyone know in which country Teck Comino and Vale Rio Doce are traded ? They are in the portfolio of MLW and I wanted to check the charts. The other main holdings held by MLW are in a beautiful uptrend which bodes well for future movement of MLW shares and big rise in copper and zinc today helps ! looking good !

[coincall] 05/4/2006 16:49

Yes Riser, new thread started. Put MLWT in EPIC box then add to favorites to see when new posts are made (by the heart marker on the right of the screen on the free BB). Thanks go to peterbarnet.

Also try the WT thread. Good luck.

[riser] 05/4/2006 16:44

Thanks to everyone on this thread who provided information about the Warrants.

I have been aware of Warrants for some time but Yesterday was the first time I actually got around to buying some ;)

It looks like MLWT have only been available for a few days could someone please post a link to a thread or source where you can get news about when warrants will be launched.

Other warrants I have found so far are FASW CYNW and SDPW although the last one appears to be no longer available. Others are listed here:



Any links to threads or sources on Warrants would be appreciated, also to any tools for calculating the fair price based on NAV and time to expiry.

[Edit] Just found but oters would be useful.

[hectorp] 05/4/2006 14:30

Thanks to them I'm up 44% since I opened.

[hectorp] 05/4/2006 13:56

GOING BANNANAS UP 12% THE wARRANTS.

[boadicea] 05/4/2006 13:51

When I sold the shares to buy the warrants it's just as well I bought twice as many 'cos they're only going up half as fast - LOL! ... and the released capital went into RCG. Rarely do I get this lucky.

[oxford blue] 05/4/2006 13:23

Don't know - but love the style: full-risk (warrants on a spread) - :)

[mcfly79] 05/4/2006 13:02

Does anyone know any spreadbetting firms where you can bet on the warrants.

Thanks

Martin

[oxford blue] 05/4/2006 12:23

MLW up nicely today - MLWT following. Any views about the current premium to Feb07's exercise price?

[hectorp] 05/4/2006 10:33

I paid about 31p for them... and now they are on a roll.

[hawks11] 05/4/2006 08:46

Hectorp, about your concerns over the mining industry, take a look at the portfolio update yesterday:
BHP BILLITON
FALCONBRIDGE
FIRST QUANTUM MINERALS
IMPALA PLATINUM
RIO TINTO
TECK COMINCO
VALE RIO DOCE
VEDANTA RESOURCES
XSTRATA
ZINIFEX LTD.
They are quite a selection. I hold BHP Billation and Vedata Resources and expect a lot more from them in the future. This isn't a fluke that the shares are performing so well.
I talked myself up and have just bought more after seeing that list.
H

[trader horne] 04/4/2006 16:31

Bd's statement confused me a bit. I strongly believe in the warrants, they will soon be in the money and I expect them to be increasingly that way- wish I'd bought even more when they were still under 30p.

[riser] 04/4/2006 16:17

I bought some MLWT warrants Today as on balance they seem to offer more than the underlying stock. Does anyone know of any other UK traded commodity shares or funds which have warrants available. Would be particularly interested in anything with links to PGM or silver.

[hectorp] 04/4/2006 15:21

By fixing ( by stating) the actual figure at which the warrant is exercisable in Feb 07 etc the issuers are doing us a favour, compared to buying calls on for example BLT on the traded options. They are reducing the effect of volatilty compared to traded options .
These are subject to volatility and other kinds of tricky variables. The only variable we need to keep an eye on is that when ITM, the warrants should rise atPAR with the underlying. Also I dont call 2-3p a large spread - again look at traded options!

[arja] 04/4/2006 12:16

traderhorne,
I think the way to look at it is that the warrant is all time value at present with no intrinsic value. So if the final exercise date was in next few days, then of course the warrants are worthless . The trick is to decide if 38 or 39p is fair time value for 10 months . Warrants are for trading unless one is supremely confident of a steady uptrend in shares in next 10 months. But wide spread is a bar to trading really !

[boadicea] 03/4/2006 15:18

Trader Horne - Yes, a wipeout for the warrants of course, but I still have the cash for which I sold the underlying shares, less the cost of the warrants. The loss of that is stopped at the cost of the warrants.