RE: RE: RE: warrants FFHwatcher1: I have done the analysis in a somewhat different way, but the final results are the same: at $15 and no time value left, profit is just over 50% for the warrants, 20% for the shares. I like the warrants, and own a truckload.
Of course, leverage works both ways! If MB has a mediocre couple of years, and share price goes back down to $10 or less, I have lost 100%. Warrant holders are not always treated well in the case of a takeover, as well, though in this case, since they are in the money, and time value is only 1/4 of the warrant price, one would likely still do ok.