> I don't understand what you meant by that. Given that LGNDW clearly
> outperformed LGND on Friday (24% vs. 14%,) how can a double-weighted
> LGNDW position have been inferior to a double-weighted LGND
> position on that day?
Russian, I'm assumuing that 50% is given to warrants for margin.
Please let me know if it is 30%
Here's the calculation (the purchase was on the date that Bernie
requested that I show 'proof'). With 6,000 to invest, 1,000 shares
bought on margin has a profit of $1,625 and 2,000 warrants on margin
$1,500 (both excluding commissions).
Stock Warrant War/Mgn
======= ====== =======
Holding 1,000 1,000 2,000
------- ------ ------
Value at 2/6/98 (bid) $12,875 $6,750 13,500
Purchase price (see below) $ 5,625 $6,000 6,000
Less Margin Loan $ 5,625 n/a 6,000
Less Margin Interest (1 day) 1 n/m n/m
------- ------ ------
Profit $ 1,624 $ 750 1,500
======= ====== ======
----------------------------------------------------------------
Cost to date of exercise:
Stock Warrant War/Mgn
($11.25) ($6.00) ($6.00)
-------- --------- --------
Cash Paid (Stock pur on margin) 5,625.00 6,000.00 3,000.00
Margin Interest (use 8%) 1,150.00 n/a 620.00
Cash earned on excess funds(5%) 75.00 n/a n/a
Exercise of warrant 7,125.00 7,125.00
Margin Loan 5,625.00 n/a 3,000.00
--------- --------- ---------
Total cost 12,475.00 13,125.00 13,745.00
========= ========= =========
|
