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Strategies & Market Trends : Bill Wexler's Profits of DOOM

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To: Bill Wexler who wrote (1607)7/16/1998 10:16:00 PM
From: CalculatedRisk  Read Replies (1) of 4634
 
Bill, in addition to the apparent wrong value using the Black-Scholes model, TAVA has made no provision for the future warrant grants in Dec '98 and Dec '99. Yet they are writing off the discount on the original grants over the entire life of the loan. This is an inconsistent handling of time periods!

Anyone with a financial background may want to look at the terms of the loan:
sec.gov

I am considering contacting TAVA's accountants or the SEC (the SEC has a group that looks into the proper handling of these types of loans).
Regards, Bill
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