Y2k, I just joined the thread. There are too many posts to read them all. I have just been very impressed by the buying action the last few days. The momentum is compelling. BTW, it really is rare that I go long anymore and I must admit it has me nervous. The warrant call being real doesn't soothe my nerves either. You do understand how the pros arbitrage on a warrant call, right? And that it typically results in selling pressure. For example TAVAW closed at 10 3/8 x 10 1/2, and TAVA closed at 14 x 14 1/6. TAVAW is callable at 3 1/2, so the mm sells TAVA short at 14 1/16, and buys an equal number of shares at 10 3/8, and immediately exercises the warrant to cover the short. This results in selling pressure, with no consequent buying pressure.
I do see that there are only 633,100 warrants. I assume each is for 1 share of common stock. There are also 20.25 million shares of TAVA outstanding. I understand this is not a significant part of the float, and the holders have enough profit in the warrants to exercise them if they are so inclined. Also, I must say, that TAVA is certainly not acting like a stock under a warrant call. I'm not sure what to make of it, but may have to bail tomorrow just for the peace of mind.
Barb |
