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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: TimbaBear who wrote (15964)	12/27/2002 2:03:36 PM
From: sjemmeri	Read Replies (1) \| Respond to of 78644

I don't really buy into Black-Scholes model but it would be one way to value the warrants. Anyway, I've got no problem with your analysis of cash flow which led you to a value per share of ~$8. However, the strike price of warrants won't be at 125 % of your fair value, it will be at 125 % of the higher value that the settlement places on the new common. So I didn't follow the part where you came up with a value for the warrants based on your fair value of the new common. (IF that's what you did.)