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Gold/Mining/Energy : T.ITE: iTech Capital (TSE) -- Ignore unavailable to you. Want to Upgrade?

To: Rob Davis who wrote (4111)	2/17/2000 11:36:00 PM
From: Keith Minler	Respond to of 5053

Hey Leverage Junkie,(My kinda guy!) I don't see why not, you would be limited by the amount of margin available. Generally I think players play the rights, you get better leverage. For example if the rights are trading at $1.00 you can buy 5 times as many rights as shares (assuming the shares are trading at $5 and there is no serious time premium). The rights will tend to move in lock step with the shares depending on the conversion rate, if the conversion is one share per right then for every dollar rise in the stock the right should also rise one dollar. If the conversion is say 4 to 1 then for every dollar rise then the rights would rise $0.25. There can be a lot of other wrinkles to consider but it makes for an interesting speculative vehicle and as I said earlier it is a win/win/win situation. For shareholder/insiders and the company. Later Keith