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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤
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Author: rnam ✧  😊 😞
Number: of 15064 
Subject: OT Billion $ Vaccuums
Date: 08/11/2023 8:33 AM
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The U.S. Department of Energy is investing $1.2 billion in giant vacuums that suck carbon out of the air--an effort to slow global warming. The initial funding will create two carbon removal hubs in Louisiana and Texas, run by startup Climeworks and oil company Occidental respectively.

The Texas hub is being run by Occidental Petroleum and its subsidiary 1PointFive, which leased 106,000 acres south of Corpus Christi for CO2 removal and to store eventually up to the billion metric tons of carbon in the ground. Occidental's CEO, Vicki Hollub, said she estimates the hub has the potential to remove up to 30 million tons metric tons of CO2 per year through direct air capture once fully operational.

https://stocks.apple.com/AU8SrMhnMSZOl0aspZKduWA
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Author: ValueOrGoHome ✧  😊 😞
Number: of 15064 
Subject: Re: OT Billion $ Vaccuums
Date: 08/11/2023 11:42 AM
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But it's not *that* far off topic. Berkshire has a large occidental investment. Last I read, Occidental's carbon capture method also allowed it to extract additional gas from the ground.

Thanks to this board, I knew to look for the Occidental warrants. You get to borrow $22 of the purchase price, they don't expire until 2027, get adjusted for any special dividends, and trade at almost no premium to the stock. The only thing you miss out on is the regular dividend yield, so you can think of that as your borrowing cost.

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Author: rnam ✧  😊 😞
Number: of 15064 
Subject: Re: OT Billion $ Vaccuums
Date: 08/11/2023 12:18 PM
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Yup. Warrants are a lot cheaper than the longest dated ITM call option available. And better liquidity.

The June 2025 $30 call is currently quoted at $36/$38. Liquidity that far out is fairly poor, so you may have to pay $37.50. So your cost is $2 time value plus the foregone dividends.

There are no call options below $30 and none beyond June 2025.

The warrants give you a further two years and very low time value, usually $0.20 to $0.30.
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