Hello teevee,
About those questions and issues that I have so "persistantly skirted". Once again, please specify, as I'd love to help you out.
My calculations from the info posted by russett (thanks, BTW!), would have, in the money, expiring this year, the following:
515,000 at 2.20
1,750,000 at 2.25
3,250,000 at 2.50
which, upon exercise, would leave WSP with $1,133,000 + $3,937,500 + $8,125,000, for a grand total of $13,195,500. Lots of dough that must have seemed a sure thing until just recently.
Tell me why, holding say a million shares and warrants, you wouldn't be better off by selling into the tremendous liquidity (like today), while still being able to maintain your total shareholding by replacing this with the cheaper stock through the exercise of the warrants?
Or, if you wanted to be negative, you'd say:
"Self, I've got me all these free warrants that I can use to get cheaper stock, so what if some more disappointing news comes out? If I sell into the market now, I reduce my exposure while still having until Xmas to decide if I want to pony up some dough. These guys are gonna need this dough, so maybe I can work a better deal later in the year. And if bad news happens with the CF numbers (strangely late), then whew, at least I got my real money off the table and only left the play stuff."
(If you can't imagine owning a million shares, then pretend you're a pension fund manager, or one of Pattison's stock guys, and your boss wants to know why you didn't sell into the the last rally.)
So, in answer to your question, yes, I do have a couple ideas.
Best Luck,
Confluence |
