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To: Jon Matz who wrote (7144)1/29/2003 8:02:14 PM
From: tyc:>  Respond to of 39344
 
I have been thinking that it might be caused by hedge funds shorting the stock against a long holding of warrants. Theoretically, if they enter a delta neutral position (short stock long warrants), they make money whether the stock price goes up or down. (But don't try that at home !)

Warrants seem to me to be overpriced in relation to their stock prices, perhaps indicating their demand for warrants.



To: Jon Matz who wrote (7144)1/29/2003 8:12:34 PM
From: Canuck Dave  Read Replies (1) | Respond to of 39344
 
Might be true, but it makes no sense to me.

The logic escapes me. I've read a few explanations of the same thing, and I can't fathom it. Can you?

CD