IFLYW the IFLY-warrants, a REAL VALUE PLAY 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.

Technology Stocks : IFLYW the IFLY-warrants, a REAL VALUE PLAY

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: blankmind who wrote (79)	4/23/1998 1:46:00 PM
From: LAWRENCE C.	Read Replies (1) of 171

1. The conversion price is 6.25. So premium at 6 3/4 is 1.75+6.25-6.75=1.25 premium 2. Why pay a premium? a. Someone will pay a time value premium if they expect the warrant to go up in value. The warrant is similar to an option that says I believe the common will go to $10 or above long enough for the warrant to be converted by someone to common and make a profit. b. When the common goes up the warrants tends to follow. Common Warrant $7.25 $7.25-6.25= $1.00 $8.25 $8.25-6.25= $2.00 $9.25 $9.25-6.25= $3.00 If you bought the warrant at $1.50 and it goes to $2.00 that is a 50% increase. A jump from $6.5 to $7.50 in the common is 1/6.5 or 15%. Lucky Lawrence

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next