% Difference holding warrants over common stock..
Ok so I'm posting this just to help someone else out.. lets say you think the common stock is going to 8 for sure.. 8 is when the warrants on the market get accelerated if the stock stays above 8 for 15 days..
So if you buy the common stock right now at 7 and it go's to 8, thats only %14 gain..
Now if you buy the warrant at lets say 1.60 here, if the common stock go's to 8, the warrant should at LEAST go to 2.50.. Thats a %56 increase. Why 2.50? because if your exercising the warrant, you get the commons for 5.50, and so you add 2.50, thats what gets you to the $8 of the common stock. Thats just if the common stays at 8, and thats BREAK EVEN, lol.. normally a warrant has a premium on top of that.. not to mention the warrant is still valid until a later date, probably another month, which is a bonus over the common. So worst case scenario, if the common go's to 8, the warrant almost has to go to 2.50, nevermind if it go's up even further..If the warrant is anywhere under 2.50, you just buy the warrant and exercise it right away and your making money lol. %56 increase vs %14 people, that's how dumb people are right now with the warrants.
These should be trading much higher than that for that type of % potential obviously. I fully loaded the other day when it dropped to 1.60 so I can't buy any more, thats why I am posting this, to help the small guys out there. These guys selling are basically idiot suits who were given these things free and have no idea what they are doing obviously, so take advantage, this is where the small guys win imo. However keep it mind, if the common stock happens to drop, or bad news, the warrants will drop much faster so that is the risk so be careful. Cheers.