RE: RE: RE: The Usual... I don't think so. A "true believer" would more likely elect to buy twice as many shares for 5c than hold an option to buy more shares for 10c at some future date. The warrant is a hedging device to mitigate risk. On a start-up IPO, the market is willing to give a stock a lot of spec valuation. After a couple of years, unfortunately, that perspective changes. The market then begins to put a lot more emphasis on real earnings or, at very least, visible progress towards profitability.
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There are a few penny stocks out there with real products that provide a tangible, valuable service. For instance, Medmira's (MIR) HIV test is recognized globally as one of the best in the marketplace. However, MIR doesn't make a lot of money at it, and its stock will therefore remain stuck in the 3c range until the company can show significant earnings. The product is great, but capitalism is unforgiving.