The warrants were much overpriced last time I checked. The
company can redeem them at 130% of the exercise price, or $7.80
per share. Tends to limit the upside a bit. You have to value
this more as a spread than an outright option
This company has gone nowhere (but down) since the IPO, so
I'm a skeptic on it. I've been holding since then, but probably
against better judgement. I have to admit, the price looks attractive,
but, the company hasn't delivered on it's initial plans, unambitious as they were.
I figure
the lack of a Simon DeBartolo deal has nothing to do with Eddie's
problems, and everything to do with OSFT's inability to get enough
financing to place the kiosks.
As to the rumor of 250,000 shares, I'm sure the negotiations are
based on what discount to market Eddie gets, or the strike price
of the costless warrants.
I'm hoping the soon to be published 10k provides some further insight
into their progress, so I'll wait until we see that within a month.
Carl |
