Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: sjemmeri who wrote (15969)	12/27/2002 5:00:21 PM
From: TimbaBear	Respond to of 78661

Steve Therefore, you aren't buying the warrant to buy the stock but to sell it back to the market. Which depends on a discount to the market value of the warrant once it trades. That's correct. I've said all along that the reason I would buy the stock today is to get the warrants and that at some point down the road I might revisit the issue and see if I wanted to convert the warrants to stock or not. I want to get the warrants because I believe the current pricing of the stock is way over discounted and that condition will correct itself by, at, or just shortly after the Effective date. If, in the calculations I don't divide my cash flow by 125%, I would have a higher valuation than I feel is justifiable to myself. After all, if I am conservative in all my assumptions, the only thing that happens is that I have a higher margin of safety (I can hear Don getting apoplectic on me for using that phrase in this situation :~}) built into the final product. Would you make any adjustment for the conversion or not? I hear your disagreement, just curious what you would do?