Arconenergy, Inc. (Long Term Investors and Fundamentals) 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.

Gold/Mining/Energy : Arconenergy, Inc. (Long Term Investors and Fundamentals)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Ga Bard who wrote (1723)	5/23/1998 6:17:00 PM
From: George Burdell	Read Replies (2) of 1757

GB The basic difference in what I am saying is that you do not pay .95 for the warrants. You pay .45. When it is time to sell, you effectively realize .50 less per share than the going rate. You buy a warrant for .45 and when you eventually sell, you cough up the fifty cents, sort of like a hefty broker commission. But you have captured the appreciation of significantly more stock over that time. Its like an margin purchase with a flat .50 per share interest charge. If you say MIDLP works out to .60 per share of MIDL, then MIDLW allows you to control .60/.45 or 1 1/3 more stock for the same investment. You still have to cough up the .50 later, but if this stock increases in value past 2.25, the same initial investment will yield a higher return with the warrants, after the exercise fee is paid. I do feel that this stock has a chance to go well beyond the numbers on my chart, but I just wanted to illustrate the $2.25 crossover. In the end, we'll both make money. GB

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next