Q: Hi Peter,
I have taken a very small position in NGA.WS using my margin account. I agree the company/warrants are highly risky but I like the 2027 expiry date and that some large investors have put money in. Lion also seems to be making and selling a small number of EVs currently so there is some experience - but certainly it's going to be stretch to scale up. The warrants will either go to zero or pull off a "multi-bagger". I think the warrants should be placed inside my TFSA but I have no contribution room available until 2021. As the value of warrants exceed the $6,000 allowable deposit for 2021 I would need to transfer out 2 or 3 of my CSU shares before the end of the year and then transfer the all the warrants inside the TFSA in the new year as a contribution in kind. Do you think this is a good strategy? Possibly you feel the warrants should be kept inside the Margin account so I could claim the loss! Any thoughts you have would be appreciated.
Thanks,
Jim
I have taken a very small position in NGA.WS using my margin account. I agree the company/warrants are highly risky but I like the 2027 expiry date and that some large investors have put money in. Lion also seems to be making and selling a small number of EVs currently so there is some experience - but certainly it's going to be stretch to scale up. The warrants will either go to zero or pull off a "multi-bagger". I think the warrants should be placed inside my TFSA but I have no contribution room available until 2021. As the value of warrants exceed the $6,000 allowable deposit for 2021 I would need to transfer out 2 or 3 of my CSU shares before the end of the year and then transfer the all the warrants inside the TFSA in the new year as a contribution in kind. Do you think this is a good strategy? Possibly you feel the warrants should be kept inside the Margin account so I could claim the loss! Any thoughts you have would be appreciated.
Thanks,
Jim