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Technology Stocks : IFLY - travel sales on the web pure play -- Ignore unavailable to you. Want to Upgrade?

To: Bill Brogan who wrote (2686)	12/2/1998 5:41:00 PM
From: John Martin	Read Replies (1) \| Respond to of 4761

1. Warrants can have the same time-value appreciation as options do. If the stock were to start running up (i.e. $16-1/4) there would be speculation that it may continue. In that case the price of the warrants potentially will increase beyond their face value( 16-1/4 - conversion price $6-1/4 > $10.) This is not guaranteed by no means.... 2. You can sell a warrant just like a stock and don't have to do anything special. 3. If the company exercises the warrant call, it will be up to you to either convert the warrants or to sell them. If you do neither and they expire, they will become worthless. What I experience with the BNGO warrant call was that many investors had leveraged themselves by using the warrants. When it came to to convert, they sold some and converted the rest. As the conversion date comes closer, the time-value of the warrant will most likely diminish in which case the premium would be lost. One other thing to consider, if you are buying the warrants but plan on converting because you intend to hold onto this stock, then consider the tax consequences. The sale of the warrants will most likely be a short term gain and it may negate any profits. In that case, you would probably be better off just purchasing the commons up front. If your in for the short term gain, warrants or commons are both a gamble. HTH, John