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To: Dee Jay who wrote (2922)6/15/1999 5:04:00 PM
From: kili  Respond to of 7721
 
Dee Jay, I can, with the hind sight of the first few days of in-the-money trading of the warrants: They displayed a higher volatility than the shares, since they, at a lower market price, generated $ for $ the same ups and downs. The argument going against that is that the warrants haven't really (on some scale of business) represented that huge a volume to attract any big'uns to play with us. We mustn't forget that it's the share price which is in the drivers seat.

Kim



To: Dee Jay who wrote (2922)6/15/1999 5:19:00 PM
From: kili  Read Replies (1) | Respond to of 7721
 
Found this on Yahoo!: Seems to me to be quite a viable explanation to what might be going on:

by: Chessen29 5015 of 5032
It seems logical that near the time of warrant conversion the stock price will drop to near the conversion level. Some people will sell rather than convert, can't afford conversion etc. The MM's know this, so there will be a lot of $12 warrants around selling at a discount. Once the warrants get gobbled up by the MM's, they will allow the market price of the shares to rise and take a nice profit! So the next month or so volatility will be the norm as the MM's buy and sell and the day traders try to catch the up and down momentum. Some of us need to kick back and relax, for those that get their jollies from worry have a good time!


Hope you don't mind the quote, Chessen29!

Kim

PS: going to bed now. Night night!