Petro Vista Energy Corp. PTVYF

RE: I can't find any .60 cent paper

[CalifDreaming]

The PP holders can be expected to try and sell for any profit and simply hold warrants.  At $0.80, that's still 30% (120% annualized) return.  Most people would take that return in a heartbeat.

The way the game is played is to participate in cheap PP's that give warrants.  You sell the shares and keep the warrants that are in effect a zero cost, zero risk option that typically don't expire for 2-5 years. You then reuse the cash in the next cheapo financing that comes along - in recent years with rising markets, it's been a license to print money.  There's an entire class of sleaze bags, err, "investors" who participate in these financings who don't give a rats azz about the companies they "invest" in.  Most companies would do well to never take their money as the sleaze bags often cause far more problems than their money ever helps.

Personally, I hate to see warrants issued - they are hyped by brokerages to management's as a "benefit" (but they never say to whom, lol).  If you look at the typical company's share performance when warrants play a roll, they are typically anything but a benefit to the other shareholders.  If share prices are up, warrant holders often sell off right back to the PP price to raise cash to exercise cheap warrants.  That's great if you don't give a ratz azz about other shareholders (typically the big majority who are the believers in the story).  

After investing in Canadian juniors for a while now, I've become extremely wary of any play that has warrants.  Often the most important thing to consider when looking at juniors is the share structure and when warrants expire and PPs come free trading.  Anyone looking at PTV should have known it was going to sell off simply because of the $0.60 paper coming free trading.  Now, if the shares were $0.70 and had $0.60 paper coming free, the downside would be minimal and I'd probably not worry about taking a 10-15% short term hit.  But at $1.20, $1.50 etc the downside risk was huge as anyone who was a buyer in the last few months has found out the hard way.

Caveat Emptor.