Hello Mark: I have an aversion to companies who pursue warrants as financing options. Warrants are advantageous to companies that want to raise capital today on the backs of the shareholders tomorrow. We will suffer. They are dilutive. They will be taking money from future shareholders to pay premiums to warrant holders. Most of these warrant holders are banks and not individual investors like you and me. I disagree that NHMCF has a shareholder-minded management.The reverse is true.
Warrants are indicative of a company that has outspent its growth curve and is desperate for cash. I see it as a warning sign. If they pull in some great numbers in their next quarter, then we know they can pull it off.
Right now, it is debatable.
The posting that Kathy's information is hurting the price of this stock, or is depressing is a laugh. One of the best features of SI versus AOL's boards is the acceptance of dissent. Every thread should have a coldly critical eye. There are two sides to every story. When it comes to investing, you have to be open to both sides. Or suffer the consequences. People like Kathy are especially critical when you have hyped stocks that are momentum driven. A case in point were some shorters on an AOL Motley Fool Orthologic thread. I ignored them in August and as a result, I am sitting on some shares that may take eight months to reach breakeven.
Also remember that people like Bruss are paid for their support. They are PR. There is nothing wrong with what they do. You just have to know what their role is. You also have to watch the Waaco Kid . He makes it very clear that he is a short term investor who rides a stock up and sells quickly on a decline. If you can't match his strategy, then you can wind up holding a loser well after everyone has left the party...
Marty
Warrant Details:
<<The securities represented by the special warrant certificates are subject to a hold period which expires at 12:00 a.m. (Midnight) on December 19, 1997. The Company is in the process of preparing an Exchange Offering Prospectus for the purpose of qualifying the distribution of these securities. If the receipts for the Company's final prospectus are not issued within 120 days of closing of this private placement, then one-half of one share purchase warrant (rather than one whole warrant) shall entitle the holder to purchase one additional class A share of the Company at a price of $7.00 per share. In accordance with the provisions of the agency Agreement entered into between the Company and Yorkton Securities Inc. ("Yorkton"), a commission in the amount of 128,000 special warrants (exercisable upon the same terms and conditions as those issued to the placees) was issued to Yorkton. >> |
