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Gold/Mining/Energy : Global Thermoelectric - SOFC Fuel cells (GLE:TSE)
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To: Gulo who wrote (584)4/17/1999 10:04:00 AM
From: Kevin Hamlin  Read Replies (1) of 6016
 
As noted in an earlier discussion this week of the warrants, the theory was that most of the warrant holders would short the stock to lock in their profit. This was done over the past several days, hence the drop in price from the $6.00 level to the three dollar level.

It was a safe thing to do, because they warrant holder would then use the warrant to cover the short....a "no risk" proposition for the warrant/short holder and a guaranteed profit.

The good thing is that the net effect will be zero with the warrant being used to covering the short. It will not be a case of new shares flooding in at all imho. If anything, I've thought that the $3.00 range share price we saw this week was artificially low due to this short term strategy of locking in profits before the warrants expired.

KEvin

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