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Microcap & Penny Stocks : Microvision (MVIS)
MVIS 0.944+2.5%Nov 18 3:59 PM EST

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To: Josef Svejk who wrote (2275)4/1/1999 11:18:00 AM
From: dwight martin  Read Replies (1) of 7720
 
Josef, I kow you know this, but just to restate for the thread:

Assumption: MVIS @ 24.
Worth of MVISW: 12.

The stock price will be at 24 when it reaches 136% of its present value. At that time, the warrants will be worth 148% of current value. There is, therefore, a theoretical 3/8 of a point to be reaped by choosing the warrants right now. This margin fluctuates, and sometimes appears in favor of the common stock.

This picture discounts the time value of the warrants (exp'n ± 2 years away), but it also discounts the possibility that the warrants will "overshoot" their $12 worth if the stock price "overshoots" the $24 conversion price during the conversion period.
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