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Non-Tech : Any Stock Warrants

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From: skywalker445/11/2009 8:19:21 PM
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Kapstone Paper and Packaging Warrants (KPPCW; $0.15)

This Kapstone Paper and Packaging warrant (KPPC is stock; KPPCW is the warrant) is another intriguing paper products leveraged play.

Exercise price is $5.00 (1 warrant gives the holder the right to buy one share at $5.00). Shares last traded at $3.87. Warrants expire on Aug. 15, 2009. Warrants closed at $0.15 today with volume over 1.6 million.

Very high risk and very high potential return with the warrants. Danger is that the warrants could expire worthless in 3 months and the share price is currently $1.13 below the $5.00 exercise price. If the shares traded at $6.00 between now and expiry, the warrants could soar from 13 cents to a price closer to ~$1.00+. This is a warrant to watch between now and 8/15/2009 expiry, IMHO; warrants were issued when predecessor firm was a "blank check company", so the chances of the warrant being extended are basically zero.

I'm not a buyer of KPCCW at present levels; would like to see the warrant price fall back to several pennies, while at the same time seeing the share price move much closer to $5 ideally.
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