The warrants are convertible at $3.50, I spoke with a gentleman at the company that is handling them. Also, they are not convertible until the underlying stock is registered, so if for some unknown reason the stock is not registered by 5.20.00, the warrant might be worth a lot less.
I based the decision on a these factors:
1. I made good profit in a short time, time to realize the gain
2. I felt the risk/reward ratio was not worth waiting until 5.20.00
3. Volume on the warrants appeared to be drying up
4. I wanted out of warrants and into underlying stock
5. I needed cash to buy GMST, something I've been wanting real bad
6. The warrants are callable if stock is above $5.25 for 20 days
That's the reasoning, I think I might be able to get the stock on a pullback, allowing me to have my cake and eat it too. The warrants were a short-term vehicle for me, I view the underlying stock as the investment I'd prefer owning for the long-haul.
By the way Stephan, thanks for your note, much appreciated :o)
Regards, JB |
