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Non-Tech : Any Stock Warrants -- Ignore unavailable to you. Want to Upgrade?

To: taxikid who wrote (91)	11/24/1997 2:48:00 PM
From: Richard Babusek	Read Replies (1) \| Respond to of 1916

My point is that all of the pressure seems to be on the selling side. 1) Normal shorts must cover in the market, (eventually) appearing as buying pressure. If one has a large position in warrants (~3.3M in the case of BNGOW), you can raise exercise cash by selling (or shorting) the stock and exercising the warrants. 2) Another way to raise exercise cash is to sell some of your warrant position. Both of these put pressure on the stock price. 3) If you are a MM or arb, it seems taking advantage of the selling pressure adds to it. 4) It seems obvious to me (now) that many if not most warrant holders will not have the cash to convert, and that if there is no benifit to converting (ie stock @6, warrant @1, ex.@5) it seems as easy (or easier) to sell the w & buy the stock (or not) than to exercise, creating additional warrant discount pressure. Since I'm in this thing, I'm just trying to learn as much as I can and warn those holding warrants (in any company) where some market pressures come from. I also think the call duration amplified the effect of selling pressure. The good news ~$16.5 megabucks coming into company coffers must come from somewhere. Us w holders gotta come up with the money, but a 6 month vs. 6 week call duration would have reduced much urgency. Ricardo