January Effect 2007 Message Board

STOCKTALK

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Strategies & Market Trends : January Effect 2007

IWM 247.30

+0.9%

Nov 26 4:00 PM EST

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From: RockyBalboa	12/13/2006 5:14:14 PM
	Read Replies (3) of 94

To make a start. Last year I had much fun with warrants which traded at totally depressed levels. They were not normal corporate warrants but warrants for some SPACs, essentially a bet on the management pulling a rabbit out of the hat. When the warrants traded at what was less than a quarter of their time value and the prospects of the shell did not change, buyers stepped in and the papers surged to their fair value and far ahead (in the case of GWAQ). With the prospects dim for SPACs I think during the december month again some chunks will trade at very low prices. TACA is the only case of a paper trading very discounted as of today but they have a problem: they vote on Dec 29...a negative vote and the price is at 0 for good. Warrants on failed SPACs are nasty in that they do not even try to bounce.

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