SI
SI
discoversearch

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 ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: George Burdell who wrote (1724)5/23/1998 7:03:00 PM
From: Kurt N  Read Replies (1) of 1757
 
I guess this is all a matter of perspective.
"It's a floor wax. No, it's a desert topping. It's both."

Goal: Own ~5000 shares of MIDL.

Preferred
--------------------------------------------
Buy: 96 shares of MIDLP @ $30.00
After dividend, 96 * 1.5 = 144 shares MIDLP
144 shares MIDLP * 35 common/MIDLP = 5040

Cost/share = 96 * 30 / 5040 = .571

Total initial investment: $2880

Warrants buying/exercising
---------------------------
Buy: 5040 warrants @ $.45
Exercise warrants: 5040 @ .50 = $2520

Cost/share = (5040*.45 + 5040*.50) / 5040 = .95

Total initial investment: $2268

Warrants buying/selling enough to exercising rest
--------------------------------------------------
Assume common price is $5. Warrant value should be $4.50. It may be more or less.

$2520 (to exercise 5040 warrants) / $4.50 = 560

Buy 5040+560 (5600) warrants at $.45, Sell 560 warrants to
come up with the exercise for the 5040

Cost/share (warrant at 4.50) = (5600*.45) / 5040 = .50

Total initial investment: 5600 * .45 = $2520

Realize that the warrants are currently .08 undervalued from the common. Assuming the warrants were at $.53, your average cost would be $.58. Also you will have capitol gains on the profits on the warrants you sold.

Average cost on the preferred has the advantage of being fixed, and additional dividend potential in the future.

Kurt
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News