Well folks, only 1/8th more to the $2 mark, and only $1/2 more after that to get to that magic $1 1/2 all-time low! Who would have ever thought?
I would gladly trade warrants @3/4 in exchange for stock at $2. Why? because long before we will realize that leverage, the stock will go up and back down many times, dollar for dollar, while the warrants remain in a relatively narrow price range, and with a big spread between bid and ask. With warrants, it is hard to buy and sell right. You can make a dollar on the stock and maybe nothing on the warrants.
By selling the stock every time it gets to the $5 range and buying it back later at half price is an excellent way to accumulate. I'll bet the traders out there are really loading up again for the next run to $4 or $5. Do this a few times per year, and who cares about the big run which may never happen, or if it does, could be 5 years down the road. The company's plans are at least 1 1/2 years delayed due to unanticipated gov't delays. And I'd bet this is not the last time we see gov't delay. Of course, on the positive side, the company now says the cost to clean up weapons etc is on the order of $200 billion instead of a measly $80 billion. Well, whoopee!!! 1% of the action over 10 years may still give a valuation of $200 million or so, translating to a $10 per share price. Any chance of that? Hope so. That would be 400% over a $2 price. OK, I'll take a chance on that.
The story still sounds great, but I'm afraid reality may make a fairy tale out of it for some time to come. Of course, I would love to be wrong.
Russ |
