Rob,
I follow your argument part of the way. I, too, like the idea of having 2,000 warrants @ 7 better than 1,000 shares @ 15. However, it's an illusion. A 10% price increase on both instruments, assuming the total value/initial investment of the portfolio is equal, will maintain the status quo.
Exercising the warrants @ 12 will give you a strong case with your bank manager (but, alas, I can't guarantee my bank will consider a funny stock from Seattle lendable...), but my case -if switching- is similar: I can leverage my investment considerably by using my brokers margin allowance. But then again: The bottom line for me is that haggling for a few, meager percents isn't my goal. My MVIS dream runs up into several 100s of lovely %%%%!
To conclude: Since the % rise to the (first) targets of $12/$24 are reasonably similar, I feel comfortable either way.
Kim |
