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Technology Stocks : TAVA Technologies (TAVA-NASDAQ) -- Ignore unavailable to you. Want to Upgrade?

To: jan m. who wrote (11300)	2/14/1998 10:15:00 AM
From: CYBERKEN	Respond to of 31646

Jan, That's correct. The warrants can be converted now. The call sets a final date, allowing the issue to be closed out.

To: jan m. who wrote (11300)	2/14/1998 1:42:00 PM
From: Jeffrey L. Henken	Read Replies (3) \| Respond to of 31646

No so far these particular warrants can be traded but not converted. Not just yet that is because they are not callable until they have traded over $6.38 for 20 trading days. quicken.elogic.com Here is the pertinent paragraph: During April 1997, the Company lowered the exercise price and extended the exercise period of its 662,000 publicly traded warrants. The warrants' exercise price was reduced to $3.50 from $4.25 and the exercise period was extended from June 17, 1997 until June 24, 1999. The warrants were originally issued in connection with the sale of common stock by the Company. The stock purchase warrants are redeemable by the Company at the exercise price if the closing price of its common shares is $6.38 or more for 20 consecutive trading days. I bought warrants(TPROW on Friday). While they are certainly more illiquid than the common stock even at these levels there may be good reasons to try this investment strategy to leverage your potential gain. Let me give you an example similar to what I have done that will explain why and how it increases your potential gain. If an investor had $5000 to invest you would be capable of buying only about 590 shares of TPRO including commissions. But for that same $5000 you can buy 1000 warrants. These warrants could be exercised only twelve trading days from now if the stock closes above $6.28 for the next 12 trading days. It has already been above that price for 8 trading days. tradepbs.com Personally I believe that at the current discount the warrants are a good buy. They closed at $4 7/8's so if you add the $3.50 to convert them into common the price is slightly lower than the stock's close on Friday. But the big thing is that you have purchased the right to buy 40% more stock for the same amount of money thereby increasing your potential gain by a multiple of about 40%. Example: Lets say the stock goes form it's close at 8.40625 to 15. if you had bought the 590 shares at the closing price your gain would be approximately $3800. However if you bought the warrants instead and exercised them at a $15 price for the common your gain will be around $6500 or 40% higher. What if the stock fails to stay above $6.38 for the whole 20 days? Well then you can still trade the warrants even if you can't exercise them. Anyway the profit projections are based purely on the speculation that the stock will trade higher. I for one certainly hope it does! 12 more trading days above 6.38 and I will have 40% more money or stock if I decide to hold after exercising the warrants. Good luck to all. Go TAVA/TPRO Regards, Jeff