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

To: Ken Wesley who wrote (11059)	12/7/1998 12:52:00 AM
From: Cary C	Respond to of 29382

>>IFLYW up 1/4 = 13.33% gain IFLY up 5/16 = 4.63% gain<< Ken you could pick other days the same way. For example Nov.27, IFLY appreciated 11.7% and the warrants went up 10.3% The key is the margin. You could buy twice as much and double your gain on the common whereas the warrants you couldn't. Therefore your gain actually becomes 9.26% and the one I mentioned 23.4%. Of course if the stock price goes down, margnable could lose twice as much also. Each day there will be fluctuations but bottom line is compare the two if the stock price was at $10 or $11 and you will find that assuming IFLY is marginable, the gains way in the commons favor up to that point. On Nov. 30'th when the stock got as high as 10.375, the warrants never broke $3. If the stock would have stayed there I am sure the warrants would have caught up. The gain on that day for the common was 1 1/2 or 21% x margin 42%. The warrants were up 1/2 or 25% Cary