Post #1055 by nola622 on the Berkshire Hathaway board

Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)

Unthreaded | Threaded | Whole Thread (11)

Post New | Post Reply | Report Post | Recommend It!

No. of Recommendations: 1

Man I wish I would have known to look for these. I bought June '25 $30 calls. The warrants would have been a better deal. They still have a $22 exercise price, right? Some (very?) rough calculations show the warrants are trading at 7% to 13% lower than would be expected of options with a similar expiration date.

The warrants still have a $22 exercise price. They don't adjust for regular dividends. I don't recall whether they include the same anti-dilution adjustments that Berkshire's warrants had, but I don't think it will matter either way. It's kind of reminiscent of the Bank of America warrants that Berkshire got privately, but the average Joe could somewhat sorta play along with the BAC TARP warrants that traded freely. These OXY warrants were Carl Icahn's idea when oil prices took their plunge and OXY was strapped for cash.

Post New | Post Reply | Report Post | Recommend It!

Print the post

Unthreaded | Threaded | Whole Thread (11)

Prev | Next

Announcements

Berkshire Hathaway FAQ

Contact Shrewd'm
Contact the developer of these message boards.

A community forum supporting civilized, and highly helpful, self-educating investors that come together for Shrewdness and merry spirits. These message boards closely follow the look and feel of the old message boards at boards.fool.com prior to the boards redirected to discussion.fool.com. Shrewd'm is not affiliated with the comprehensive and excellent investment website, The Motley Fool (TMF), in any way. The Shrewd commmunity here has owed, and continues to owe, gratitude to The Motley Fool for nurturing a culture of jovial irreverence towards Wall St, and that tradition will continue here.