Traditional corporate equity warrants

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19. Further information

Warrant prices

Warrant prices can still be a little difficult to find. Even online. quite a few web sites do not carry warrant prices. Those web sites that do include: ADVFN (www.advfn.com), Ample (www.iii.co.uk), and Teletext (www.teletext.co.uk).

The EPIC code for a warrant commonly just adds a "W" to the end of the company EPIC code. For example, the EPIC code for Luminar PLC is LMR, and the EPIC code for Luminar warrants is LMRW.

Offline, the best source is the Financial Times. However, not all warrant prices are carried there daily, if at all. Some warrant prices are displayed in the Saturday 'Dealings' page. The authoritative reference is the Stocks Exchange's Daily Official List.

Warrant terms

As emphasised in this course, it is very important to carefully read the exact terms of a warrant. Terms are not standardised, and one can be caught out by an unusual feature.

The standard comprehensive reference is The Warrants Directory, published by the Warrants Alert newsletter service (address below). For investors not willing to buy this, warrant terms can be found, but it may require some sleuthing. First place to start looking is the company itself: their annual report, web site, company secretary or share registrar. If the company is an investment trust, information can be found in the quarterly AITC magazine, Investment Trusts. Finally, ask your broker.

Online information

• Warrants Alert Newsletter (www.tipsheets.co.uk) - leading newsletter on UK warrants, published since 1989
• Trustnet (www.trustnet.com) - web site with statistical information on investment trusts (IT), including IT warrants
• Association Of Investment Companies (www.aitc.co.uk)
• Investors Chronicle (www.investorschronicle.co.uk) - investor journal with a monthly table of warrants listed on the LSE.
• London Stock Exchange (www.londonstockexchange.com/coveredwarrants/)

1. Introduction 2. What is a warrant? 3. The warrant market 4. Advantages of warrants over shares - the magic of gearing 5. Further attractions of warrants 6. Disadvantages of warrants 7. Fundamentals - warrant terms 8. Fundamentals - intrinsic value and parity ratio 9. Basic analysis 10. Analysis - time value and premium 11. Analysis - gearing 12. Analysis - break-even and capital fulcrum point 13. Analysis -sample spreadsheets 14. Analysis - summary 15. Investing strategies 16. Dealing in warrants 17. Warrant exercise 18. Further topics 19. Further information 20. Conclusion

• Andrew McHattie on Covered Warrants