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Technology Stocks : TAVA Technologies (TAVA-NASDAQ)

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To: Gurupup who wrote (751)7/31/1997 7:04:00 PM
From: Karl Drobnic   of 31646
 
Whether outsized gains will be made on the warrants depends on the share price rising well above $6.38 during the 20 day run makes them callable. Dow Jones Irwin published a book with "Warrants and Convertibles" in the title that I've checked out of several libraries over the years. It shows how to make the graph that shows where the sweet part of the run will be. At some point, the warrant will begin to act like an in-the-money option, losing its premium and tracking the share price. The problem will come if there is arbitrage just above $6.38 that caps the share price, and the warrants get called before the shares break out in their big run (I mean the BIG run that's coming, not this piddling thing of the last couple weeks). Check out the book if you own the warrants.
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