RE: RE: RE: RE: RE: 2014 warrantsFlymar,
Basically, if you buy the 2014 warrants today, you are betting that the price of the commons will be higher than .98 by 2014. You calculate this by adding the strike price (60 cents) and the warrant price (38 cents). So youre paying a 37.5 cent premium to buy the shares of the common at 60 cents.
If the share price is $3 in 2014 on the exercise date, your warrant will be worth $2.40 (60 cents plus $2.40).
37.5 cents -----> $2.40 = 6.4x return on your investment on the warrants
81 cents ------> $3.00 = 3.7x return on your investment on the commons
As you can see, there is a lot more upside potential in warrants, obviously this works both ways as this is a high sk high reward play.
I think with a 2014 exercise date, which is a lot of time, the risk is minimized.
I too agree that the 2014 warrants are very appealing.