Hypertension Diagnostics Inc (HDII) Message Board

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Biotech / Medical : Hypertension Diagnostics Inc (HDII)

HDII 0.0001000

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Sep 24 3:50 PM EST

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To: scott_jiminez who wrote (52)	1/24/2001 9:19:48 AM
From: scott_jiminez	Read Replies (1) of 120

This was posted on the Yahoo thread this morning... (posted in response to ' JouniTurre ') ---------------- >>>I've read most of your recent posts and have done some of my own DD. Here is my take on HDII and the [class A] warrants [HDIIW]: 1. The company clearly has a viable product which may be producing some very nice revenues by q4 (FY ends in June). They wish to expedite the placement and implementation of the Profilor and therefore are creating an incentive program to collect the least expensive funds available to them - the class A warrants. 2. There are now 2 aspects to the incentive: a) the 'free' class B warrants distributed to those class A holders who decide to exercise during the indicated period; b) the reduction in the exercise price of the class A thereby creating greater current value in HDIIW. This is a interesting situation. For class A holders, I see one inescapable conclusion: don't exercise...at least for now. Here's my rationale: In the period between the first announcement of the class B offering and the one made yesterday, the company decided to 'up the ante' by providing the additional incentive of the drop in the exercise price. In other words, the more the company thought about it, the more they knew what a valuable resource those class A warrants are. And guess what happens to a valuable resource whose supply remains the same (or decreases if 'exercising' increases) while the demand (by the company) is increased substantially? The price of the resource goes up! Given this, and the very good possibility that the company will elevate the incentive again - by reducing the exercise price more, for instance - there's a powerful incentive for warrant A holders to hold for a while longer. The warrant A holders are in the drivers seat here: they own a 'commodity' whose desirability just went through the roof. By simply sitting on their investment for 6-8 weeks, they can exert a 'normal' market response to a significant alteration in the supply/demand equation (demand spike) for HDIIW. My perception is that class A warrants/HDIIW just became quite a bit more valuable. I'll be watching this.<<< ------------------------------- messages.yahoo.com

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