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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Raymond Hill who wrote (1694)	3/13/1998 2:25:00 AM
From: Cary C	Read Replies (1) \| Respond to of 29382

Hi Raymond. I actually only left PCTH with my trading shares. My core position remained n tact and was a lot more than my trading position. I've made so much trading this stock that my core position is entirely all profits. >>For people who buy stock on margin, the common is a better speculation when the warrant approaches a price that is close to 1/2 of the common. If it achieved a price of exactly one-half, it could do no better than the common, at least up to the exercise price, and would probably fall faster in a downturn.<< Thanks for the example on the common. I had never looked at it that way before. With PCTH it appears that at least in the last 9 months the stock has always fallen faster than the warrants. >>In the longer-term picture, we must assume that the warrants will be called, however, if the stock is in a major up-move at the time, the warrant could go higher than we think, and at a greater per cent than the common, at a price above 9 3/8.<< Considering that the stock price has to trade higher than 9 3/8 for 20 consecutive days I would think that the warrants could possibly go a couple of points higher Cary