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To: koan who wrote (10291)	5/2/2006 9:20:19 PM
From: SwampDogg	Read Replies (1) \| Respond to of 78426

<<Wts actually, often are not as volitile as the stock.>> If you could show me an example of that I would be interested. The K warrants lost 90% of their value during the 2003-05 downturn and the liquidity was close to zero. Warrants are not safer on the downside as the liquidity dries to nothing. As you know your wts have no intrinsic value at all until the stock price moves above $15. If the stock does not move above $15 by 12/06 the wts will be expire worthless. After the stock moves above $15 the intrinsic value of the warrants will rise at the rate of $0.3333 for every $1 that the stock moves up. There for you need to get above $18 by 12/06 for the warrants to be worth more than they are today on an intrinsic basis. IMO out of the money derivatives are meant to be sold not bought.