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Gold/Mining/Energy : Arcon Energy (MIDL Presently) The Ultimate Sleeper

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To: MARK R. BLACK who wrote (1722)5/31/1998 3:42:00 AM
From: Ga Bard  Read Replies (3) of 4142
 
Now that is a fairly good inquistive post.

the warrants are great buys:

1) what would you do with the warrents that you hold at .46 today ?

1.) Well you can accumulate to see if the company does define itself then exercise them once you are comfortable with the company's future potential.

or

2.) buy and exercise at a cheaper price that the common which presently is a profitable scenario.

2) is their any need or value in exercising them at this point of time, and or is holding the warrents for any length of time any big deal ?

Well if you buy and exercise the warrents then you are reducing the warrant float thus reducing the inventory of some to short against the common with them thus driving up the warrant and common value price. Now they say warrants are not marginable and can't be loaned out which is true but the MM can short anything that trades in the market. However the abitrating is the key.

Some one can buy the warrants short down the common and then cover common then sell the warrants. now this is done basically on a daily basis and has very little risk factor UNLESS the warrants go up and the common so they cannot cover on the common and forced to exercise the warrants.

Hope this helps

GB
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