RE: Why the "A" warranst offer great leverageGood example but if the stock stays at 80 by July only the shares and not the warrants will have made the investor money. Now take this example. If the stock goes to 5 dollars from 73 cents that means the investor has made 7 times his original investment. At 5 dollars without any time premium what so ever, the warrant would be worth two dollars and thirty five cents. That would be a return of 9 and 1/2 times the original price of 25 cents. Also for the same amount of money that bought one share of stock at 73 cents you are getting almost 3 warrants, which gives you additional leverage of 50%.
Bill