Isn't it nice to see two digits again. Looks like Xmas will be worth while celebrating despite a traumatic year.
What goes up -so fast- will come down. Technical reactions to these last few days are bound to come. The good thing is that the shear force of the moment has shown a path which will be repeated.
I read the 3Q figure statement on the funding side as MVIS declearing that NEW development programs are matched as far as funding is concerned. I don't interpret the statement as being what we're looking for: The further financing of the company as such. However, the excellent performance of the share is good news for us as long as new funding hasn't been fixed at some old/lower price. Dilution is being reduced for every cent the share rises.
The share's performed significantly better than the warrants. Comparing with the last two times the share pushed through the $10 mark, the warrants have been between 3 3/4 and 4. Since the exercise price is $12, further warrant jumps will -as they did last year- be more and more related to the share price, not in terms of a mathematical function, but more upon the 'certainty' that the share will actually reach the $24 (max) of the warrant pricing. (IMO).
I'm currently thinking of reviewing my position of warrants vs. shares: Since I haven't got enough equity to convert all my warrants to shares, $12 x 'x', but have to consider that at $24, the warrants can be converted at exactly half the price, I might just go for taking out a maximum on the margin tradeability. Assuming, of course, that at that particular point in history, the momentum of the shares and development stage of the company will coincide with a continued strong growth in share prices. Another option is naturally to do some heavy margin buying when the warrants pass $5 (e*trade has allowed that before).
Kim |
