Value Investing 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.

Strategies & Market Trends : Value Investing

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Spekulatius who wrote (37566)	4/25/2010 7:51:51 PM
From: Spekulatius	Read Replies (1) of 78507

re Warrant - OK the intrinsic value of the first W1@12$ =-1.5$. The second warrant W2 is wort: 10.5-7.5$=3$ but you only get 1/2 of W2 for every W1. So the combined intrinsic value of warrants is really zero right now. The interesting thing about the 2nd warrant is that it's basically a 2year call option at a 7.5$ strike price. I assume you only get an W2 if I choose to exercise W1 (1W2 for 1x W1). I'd say forget about the stock, buy the W1 and exercise, then sell the exercised stock after a while while it is not depressed any more after the offering and the discount to NAV is reduced. Then you basically got a cheap 2 year option for the stock at a 7.5$ strike. What is the ticker symbol again :-)?

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next