No reason to buy is a reason to buy

Article Abstract:

The UK stock warrants market has not benefited from high rises in share prices, and warrants have tended not to perform well since May 1996. Warrant holders invest for capital gain and opportunities for this appear slim over the short term in Jan 1997. There is fear of a drop in Wall Street prices and of the impact of political uncertainty in the UK. Investors could still consider warrants in overseas market unaffected by UK politics. Warrants have underperformed securities over two years, leading to low premiums, and warrants can be invested in for the long term.

Analysis

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Hunting for warrant bargains

Article Abstract:

Warrants are a more risky type of investment, but investors can learn basic pointers which can help them achieve a profit. They permit investors to gain exposure through investing a small outlay. They bring benefits in times of volatility. They tend to perform better in bull markets than in falling markets. Indicators include the capital fulcrum point (CFP) which can be compared with the market CFP, and allows comparisons with warrants in similar sectors.

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The case for warrants in a bearish climate

Article Abstract:

Warrants have not performed as well as UK share prices generally, and this could be because share prices are forecast to fall. There is political uncertainty in the UK, and UK markets could rise too far with US markets, making a fall more likely. Premiums for warrants are very low in April 1996, as a result of warrants' underperformance. The increase in choice of warrants available has also contributed to their drop in popularity.

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