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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: MKTBUZZ who wrote (6675)	5/13/1999 7:51:00 AM
From: Rande Is	Respond to of 57584

That is not uncommon, Buzz. When you buy a share of common or prfd you hold an equity stake in a company. When you buy a warrant you do not. What you hold is the right to buy a stake in the company at a future date at a certain price. The gamble is that within that [4 year] window, the price of the issue will have exceeded the strike price [5 dollars here] and that you will be buying your shares at a discount to the market price. Now the only beauty about the PLCO warrants, as I recall, is that they are not convertible to common, but to Series E Preferred. So when the common is at 5, the preferred should be up near 30 and your right to buy the preferred at 5 is like holding a 6 bagger . . . and all you had at RISK was the 30 cents you paid for the warrants. Rande Is