OTCPK:EMMBF - Post by User
Comment by
wrightonon Mar 18, 2019 10:07am
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Post# 29499871
RE:RE:RE:WARRANTS
RE:RE:RE:WARRANTSYour comments look good to me. Once EMC is delisted, and you are buying warrants for ALEF, you will need to use that .8377 adjustment factor to determine any values
Today, with warrant price at .37 and ALEF share price at 2.28, you are paying .37/.8377 + 1.75 = 2.19 if you exercise the warrants. Better than buying the shares directly!
By the way, there is significant leverage with these warrants, meaning small percent change in share price should lead to a much larger percent change in the warrant price (both up and down, of course! ) The warrants expire on Dec 6 2019, so a buyer one would need to be pretty confident in a reasonable increase in share price (say 20% or better) over the next several months. A 20% share price increase would give an implied warrant value increase of 46%, assuming no time value. The leverage increases with further increases in share price, with a 50% increase in share price implying a warrant value increase of 200%. But keep in mind the short time before the warrants expire. Would one expect a 50% price increase by December?