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Non-Tech : LACI-Latin American Casinos Inc.
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To: EenieMeenie who wrote (18)9/26/1997 2:48:00 PM
From: Crabbe   of 54
 
I'll try and fill you in on why the warrents are considered a good buy by the new correspondents on this thread.

The warrant is presently at 1/4 asked, (it looks like Dax probably went ahead and bought some.) Should you buy warrants at that price you could for $1000 control 4000 warrants. If you were to buy stock today at 1 7/8 you would be able to control 533 shares ignoring commissions.

Should the stock rise over the next two years to 13 the call price on the warrants, the warrants would then be worth approximately $5.75 -$6.75 depending on the remaining time value of the warrants

Assuming the lower though they would be worth more that would be a 23 bagger over two years or less, had you of purchased stock the stock would be worth $13 for a gain of 293%. At lesser values the warrant would still outperform the stock. ie at $8 for the stock the warrant would be 75 cents in the money and carry a premiun of 50 cents to 1 dollar split the difference and you would find the warrant worth about $1.50 for 600% the stock slightly better than 400%. As this is a speculative venture for all of us, we are taking the extra risk in anticipation of probably much better gains.

The warrants are not necessarily bought to purchase stock later but are bought with the anticipation of selling them at a future date for profit just as you expect with a stock like LACI.

Rod

Dream a little
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