Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: ViperChick Secret Agent 006.9 who wrote (6640)	1/27/1999 2:57:00 PM
From: RockyBalboa	Read Replies (1) \| Respond to of 122089

Many companied looked to ride their stock prices, remember BFLY reecently or somehow SRCM, AHWY or AMEN, maybe IFLY, maybe KLOC in the making. ....W: These wee bee trading warrants have certain company call rights built in. The SEC filings reg. warrants state some "200% of the exercise price for 20 days" make the warrants call- or "redeemable at $0.01" (only an example, this differs) That forces the warrantholder to pony up cash and exercise the warrants otherwise he gets - $0.01. The safe plays have been, like that: buy the XXXX warrant at a few teenies. When the stock is high enough, get a borrow and short the stock. And close the short position with stock you get upon exercise of the warrant. The other way round is also possible. Short the stock, and instead of covering, buy the warrant. Necessary, if the stock is no longer to borrow. How do you call the warrant game when you have the warrants, the stock goes up up up and that warrant get exercised. But you get nice tapestry instead of tradeable stock. How's that? (Once, in my earlier "shoot-first - howl later" days in the early 90s I have bought such a warrant. The stock was at 340, the 350'er warrant traded at 0.5-1 with 3 weeks to the expiry. Why not do it, try a block? The stock price went up to 375. but the warrant didn't move an inch. When I got curious I learned that the deliverable stock was a "B" issue unlisted, without dividend rights to be concatenated with the trading stock after the next div'd date. Lesson learned.) C. Btw. AHWY set a record. Just IPOed and after a month they called the IPO warrants to cash in once more.