Gary - Maybe it's a little unfair to zing those that bought and hold warrants as greedy, altho I don't disagree. Aren't we all trying to acquire as many shares as possible? To those of us simple-minded folk who 1)didn't catch onto the P advantage early, and 2)have relatively small accounts, the warrants looked like a way to grab more shares while delaying having to come up with .50/share. Maybe not the best thing to do, but understandable. Furthermore, you predicted that the price of the trilogy would equalize and then the different instruments would keep pace with each other. This implies that the commons will always be priced .50 above the warrants, more or less, so on a purely dollars and cents basis when/why would one want to convert? I know this ignores the arbitrage problem, but it is the way some might look at it. Frankly, I don't have a daytraders attitude or speed and didn't catch onto coverting warrants, selling commons, and buying more warrants, etc., until too late. That was a great play and did eliminate warrants. Now, to up the exercise price would cause some to sell to get enough $$$ back to exercise the remainder...a real catch22...but thankfully, only a short-term problem.
DB |
