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Gold/Mining/Energy : Precious metal company Warrants

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To: orkrious who wrote (610)4/9/2007 10:02:41 PM
From: LLCF  Read Replies (2) of 681
 
<If there is an extraordinary amount of demand for these will that raise the price of the underlying common?>

That could theoretically happen.

<Do you want to hazard a guess as to the price?>

Here is what my guess (and explaination behind) as to what would normally happen.

1.) These are being listed because the company has issued them in the merger and promised to do so.
2.) Concordant with 1.) IMO would be SELLERS as the owners of the stock that got taken over look to continue their cash-out.
3.) Let's face it, buyers of these things are normally arbs or houses that need to take the other side of those sellers, they should try and open them low if there are the natural sellers in my scenario. Of course there are types like us that like to buy these things, and they are getting more popular, but we're usually small potatoes from what I've seen in other issues.
4.) You'll probably want to have bids in on the open.

Pricing: I have them worth north of $3 on a 50 IV. I'm not a buyer there. I'm "interested" below 2.5 and will have bids in down near two, probably starting around 2.25 getting bigger as the price goes down with some very large bids below 2 just in case.

Good luck.

DAK
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