RE:RE:RE:WarrantsAnother way of thinking about it, is that your interest/accretion debentures are like getting 5 cents a share reduction a year on the conversion price.
They are definitely more attractive than the equity and the warrants implied vol suggest the debentures should be a lot higher than par.
johnale wrote: Given the three years before expiry on the warrent, it's not a bad bet. It's more a bet on Beena and what she can do in that timeframe.
short term the warrent is already priced at 7 which is 30c equity.
equity is trading at almost half that.... so you get a .71% discount by buying the equity today.
the debs at 87 are pricing at 24.8c equity - also a premium but you get ~9.2%/yr coupon and ~12.71% accretion debs. More than 20% return + equity upside.
many ways you can play this.... but ultimately the EQUITY has to go up for this to all be worth it.
im at a loss if q2 isn't solid to great - and we get a significant valuation increase.