RE: RE: ML.WT.A warrant leverageCasper.. could you explain why you would rather have a warrant to exercise at 4.00 and good until 2012 for .12-.13 cents over a warrant you can exercise at 1.00 and good until 2013 and can buy for .25-.30 cents??
If I buy 10,000 ml.wt.a warrants for .25 and ML goes to 5.00, I will be able to exercise my warrants and get ML stock for 1.00 when the actual price is 5.00. I get $50,000.00 worth of stock for $10.000.00 plus the original cost of my warrant.
You, on the other hand get 10,000 ml.wt warrants and pay .13 cents. ML stock goes to 5.00 and you want to exercise your warrants. Since yours has to be exercised at 4.00, You get $50,000.00 worth of ML stock but it will cost you $40,000.00 plus the original cost of your warrant.
Sure, one can trade them in before and not exercise them but the 4.00 priced warrants will prove to be a bigger gamble. The chances of ML getting to 1.00-4.00 is far greater than it getting back to 4.00 to 12.00 ,