RE: RE: RE: RE: RE: RE: RE: RE: warrants Basically, I bought the warrants because I believe the time value is significantly mis-priced. Also, I get significant leverage.
The share price has popped a lot and the time value has barely moved. It is only 1.5 cents and it could be as much as 5-10 cents.
That would put a target market value closer to $0.25+ for the warrants PLUS (or minus) whatever the stock price changes at, keeping in mind the 20:1 ratio. A $0.20 movement in share price, equates to $0.01 change in price for the warrant.
At a $15 stock price (analyst estimates) for MB, the warrants intrinsic value is about $0.25 plus another $0.05-$0.10 in time value. If MB did a 20:1 consolidation on the warrants, as they did on the stock, the market value on the warrants would be about $4. right now. Obviously, investors can easily equate $4 in value on a warrant that allows you to purchase a $14.00 stock for just under $10 (over the next 2 years!!!). I don't want to get ahead of myself by calling it a $14 stock, but you get the picture. There have been a few 1M warrant trading days but keep in mind that there are 243M warrants out there.