Good morning Kim,
We seem to have quickly zeroed in on the core of our differences. If the strike price of the warrants is $8, as you believe, then they are obviously much more valuable than my calculations based on a strike price of $12!
I was assuming $12, in which case I think you'll agree [based on your response] that they are extremely overpriced relative to MVIS. If it is in fact only $8 strike price, then MVISW may be an excellent investment at current values, and this would explain its recent sharp rise as it comes into the money and begins to parallel MVIS.
On the other hand, if I am correct about the $12 strike price, and the best MVISW can possibly do is to equal MVIS performance, while the worst MVISW can do is expire worthless even as MVIS continues to rise, then I would strongly suggest you think about exchanging your MVISW for MVIS at present values!
(I hope to make clear that I have no opinion whether MVISW is overpriced, or MVIS is underpriced, only that their RELATIVE values make no sense because they should be so tightly, mathematically, attached to each other.)
You wrote: "According to MVIS Annual Report 1996, the highest exercise price of the warrants issued (and there are a lot of different classes), is $8."
I lack access to MVIS Annual Report, and was relying on the poster
"Richard Rutkowski", who represents himself to this thread as the President of Microvision. (And I have no reason to doubt him, do you?)
He posted (http://www.techstocks.com/~wsapi/investor/s-9735/reply-121)
"Now just to set one or two things straight...
1) MVIS warrants are exercisable at $12 for five years...
2) They are callable by the company if the common stock trades at $24 for 20 trading days."
This is an extremely important dsicrepancy!
Perhaps someone else can find help us with this?
Peace,
Droog
P.S. I confess, I use a "Fake Book" for toasts of the world. Once had the fortunate chance to use it in Copenhagen, but not yet in Norway.... |
