American International Petroleum Corp Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : American International Petroleum Corp

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Michael Dappert who wrote (2111)	9/17/1997 8:25:00 PM
From: Juan Dominguez	of 11888

Hello Michael, allow me to take a stab at your warrant question. When the common stock is at $4/share. You can expect the warrant to trade around $2.00-2.25/share range, which is one half the stock price up until the common stock reaches $8.00/share. Once the stock is over $8/share, the warrants should "theoretically" trade at around $4/share and continue to trail the stock by $4/share (ie. if stock is $24/share,warrants should be $20/share, etc.) However since a warrant can be construed as an option on AIPN common stock, the trading in the warrants can be very heated if investors anticipate a fast moving common stock price, therefore it is very possible the warrants could trail the stock by less than $4/share maybe as low as $2/share. I have seen it happen many times. Another aspect that attracts many investors to warrants is the fact that warrants allow for greater % gains if the general direction of the common is up. For example, Let's say you buy 1,000 warrants at today's closing ASK of $1.56/warrant (keep in mind also that the common stock closed at $3.375/ASK. If the common stock goes to $10/share and you hold the warrants, the warrants should be worth AT LEAST $6/share (possibly more as I explained earlier). If that is the case then you had a gain of AT LEAST 285% on the Warrants( 1.56 to 6.00) and the common stock only went up 196%( from 3.375 to 10/share). Hope that simple explanation helped. TOO ALL: whatever happened to all the naysayers that were BUZZING around our thread? Looks like my fly-swatter worked real well. Looks like we might get a gap-up opening tomorrow. I keep on hearing the word AMOCO from some of my trader friends but who knows? Congrats to all the patient and resilient investors Juan

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next