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Technology Stocks : Nam Tai Elec. (NTAI)

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To: Joe Dancy who wrote (1240)3/15/1998 5:35:00 PM
From: blankmind  Read Replies (1) of 1696
 
- This is strictly my experience - and not scientific:

1. When warrants are out of the money & trade at a hefty premium - the stock soon follows.

2. Couple weeks ago, NTAIF was around $17; warrants about $3.50; and x/p $20.50.

3. Tells me the stock will move higher - eventually - & I bought some common shares.

4. So far, I've been wrong - as both the common & wts have moved down. But I'm in for the long haul. And over time, I predict both will rise substantially. Actually, in Nam Tai's case it's for 2 reasons - the hefty price of the warrnats & their ability to generate so much in cash & profits. Plus, the warrant holders would have to fork over $20.50 for each warrant they exercised. Not bad.

Regards.
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