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Technology Stocks : Blank Check IPOs (SPACS)
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To: Glenn Petersen who wrote (2085)6/12/2009 7:38:24 PM
From: RockyBalboa  Read Replies (1) of 3862
 
Thanks. Hmpm, thats not what I like to read. Oh well.

From a pure options valuation standpoint, with the common stock at $6 (it recently briefly hit 7.50), the warrants with strike $7 good until 2012 are considerably more worth than 0.30.

For example, the Jan 11 $7.50 option in Ford (trading $6.11 today) and not a very volatile stock recently is bid 1.75; RF $7.50 options are bid $1 (but RF is at 4.45).

From that standpoint, the warrant offer is poor. No way this is done below 60c (or one share for 10 warrants) a fair price would be $1.20 (one share for 5 warrants).

On the other hand, it would make the stock (and the remaining warrants) cheaper if the company really manages to exchange a lot of warrants at that ratio...
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