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Strategies & Market Trends : REITS - Buying 1 - 2 weeks before going ex-dividend -- Ignore unavailable to you. Want to Upgrade?

To: James Kibler who wrote (589)	1/21/1998 9:11:00 AM
From: Richard Barron	Respond to of 2561

Jim, I have observed a few warrant calls in the past. Usually the shareholders panic and sell for a few days as well as hedgers buy the stocks and short the warrants if there is a premium. This was the case yesterday morning, but the premium is gone. If the warrants get a negative premium and you want to buy the stock, it is a good idea to buy the warrants instead if the premium is large enough. My brokers have always called me 3-4 days before the conversion to see if I elected to convert. They charged a nominal fee like $10 or $25 to do the conversion. Is Deswell a good investment is the important question. With the $2.16 expected earnings and a potential gorwth rate of 20% +, the fair market value is at least a P/E of 12 or $26.00. If on the other hand, their cash is gone because the invested everything in currencies and stocks, and their business is down, then the stock may be worth $10-15. I don't think the latter is the case, so I'm not going to panic. In a day or 2, the selling pressure should end, and i will probably but some more of the stock (or warrants if they have a negative premium). Richard