He's right, at least before commissions. The first thing you need to do is forget what you paid for the warrants - what business analysts call a "sunk cost". IF you want to convert the warrants [which I also own] to stock, all that is relevant is the conversion cost [$41.75/share], the stock price, the warrant price and the commissions and fees. What you paid is NOT relevant to the sell/convert option, although it may be relevant to the overall situation [sell, don't convert, convert via either sales or true converstion, or just stand pat].
If you are bullish on Intel in spite of the DEC lawsuit [and I fear we will all take a good bath at least today], then what I don't understand is why you would want to do anything at this time. The warrants will produce a larger percentage gain than the same dollar value of stock. As an example, the gain on 1,000 warrants and 1,000 shares of stock will be the same, but to go from 1,000 warrants to 1,000 shares, you will have to kick in approximately $41,750 of additional cash. Personally, if you are bullish and plan to hold Intel for the forseeable future, I would hold the warrants through next January. |
