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

To: Spekulatius who wrote (39235)	9/11/2010 6:10:37 AM
From: Madharry	Read Replies (1) \| Respond to of 78755

I guess I should have consulted with you before making my inital purchased. would have saved some bucks. Here is a puzzler. numbers aproximate: fund sells for $12. nav 21 but dilluted nav is 16 because of warrants that sell for $1 allowing you to purchase more shares for $12. now it seems to me that if you owned all the shares in the company it would make sense to buy all the warrants and let them retire worthless as it would cost $1 per share to add $5 of NAV. However if you own a small number of shares does that plan make sense as well? what if you owned 10 or 20% of the shares? Now originally the fund floated a unit consisting of one share and one warrant so its very possible that the majority of shares are owned by individual who own the same number of warrants as shares. from a tax point of view if one buys is these in a taxable accounts and instructs the brokerage to allow them to retire worthless even though they have economic value. can you still deduct the loss from your income?