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To: SE who wrote (11371)2/15/1998 11:36:00 PM
From: Karl Drobnic  Respond to of 31646
 
Once warrants go deep into the money, they track advances in the stock price tick for tick with very little premium. It is when the stock price is about the same as the exercise price that premium becomes a factor. Above $10, the warrants will trade with the smallest of premiums, and as some have correctly pointed out, you'll get more bang for the buck. If you expect the stock price to be in the $6.50-$8.00 range when the warrants are called, stay away from them. Above $8, chances of an orderly exercise are increasingly in the warrant holder's favor. But if you don't know the math, heed the warnings of those who have been burned.



To: SE who wrote (11371)2/15/1998 11:43:00 PM
From: Jeffrey L. Henken  Respond to of 31646
 
Scott I think I'll probably sell or exercise the warrants before the call date.

Thanks for the advice. I looked at BNGO and I can't belive it has such a low PE...

It dropped just due to the warrant call? Seems like a solid company.

Thanks again, Jeff