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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude -- Ignore unavailable to you. Want to Upgrade?

To: Michael L. who wrote (18679)	6/19/1998 12:42:00 PM
From: Magnatizer	Read Replies (1) \| Respond to of 79308

Michael I don't do much with warrants other than a trade here and there. I really don't know how they are exercised or anything. may want to ask over here Message 4890596 most of the posters have a good background in warrants. ht david

To: Michael L. who wrote (18679)	6/19/1998 10:36:00 PM
From: Alski	Read Replies (1) \| Respond to of 79308

Michael re: IFCI Warrants, You may exercise your warrants any time you please for $5.50 by contacting your broker and telling them to do it. 1 warrant and $5.50 gets you one share. If the common trades above $8.10 for 20 consecutive days the company may "call" the warrants; that is, "force" you to exercise. It's still 1 warrant and $5.50 gets you one share, but their clout to force you is: if you don't exercise within the allotted time (usually 30 days) they can buy your warrants back from you for only $0.10 each. Obviously no one would allow that since the warrants would be trading at $2.50+. Of course you can also just sell the warrants outright up to expiration or; if they're called, the end of a call grace period. It could happen but, if Datek converts your warrants automatically they would be doing you a really really big favor and sticking their neck way way out. DO NOT EXPECT ANY BROKER TO AUTOMATICALLY CONVERT ANYTHING!!! Call them and talk to them about it. Also be sure you understand all conversion fees/costs/commisions. Sometimes it works out better to sell the warrants and buy the common at market rather than convert, depending on those fees and any small premium the warrants might have. Do the numbers! I believe there are also some screwy IRS rules with respect to determining capital gains holding periods, wash sales, and the like after converting warrants or options. It has something to do with "essentially the same" security, but you'll have to seek advice elsewhere for tax matters. Alski