RE:Warrants the cause .. I don't think so... but a good thesis Purveyor wrote:
Lets say that the nay-sayers have it and this recent downtrend is the result of warrants being cashed in and turned over. I personally don't know where these hundreds of millions of shares are coming from because there aren't that many warrants outstanding. None were exercised during the last quarter, according to financials, during which we took a dive down to the low $.40's, and so if any were left, they would have been exercised under that premise.You know, to quickly capture any gains before PHM destroyed itself that time. If they weren't there is no reason or opportunity to purge them now, so I think that cannon is out of juice.
The average price for remaining warrants is $.84 as of Dec 31/15 which includes everything I suspect up to warrants at $1.69. Over 30M.
The last fund raising at $1.50 came with warrants, but those never got exercised because they were locked out and didn't come free until after the stock dropped below $1.50. They have now expirerd. They are off the table.
So I think there is another run building to take us up over $1 to take advantage of those warrants. 30M warrants is a bundle to leave on the table. Not only for the investors but for the company. I think PHM would be delighted to force the exercise of those warrants and pull in an extra $25M
Warrants come with an option for the company to force the exercising. So this is like cash in the bank for PHM performance.
The company has the mandate to purchase not paying more than $1.50/share for buy back. They haven't bought any to date.
So a good strategy would be to build some positive news. Begin releasing it. Get a run on the price to force the exercising of warrants. Then take in the cash to drive the business.
Hi Purveyor, very interesting analysis. It would be good to see the execise forced provision for this specific case.
In general, I think the exercise forced provision gets triggered if and when the exercise price of the warrants is below the avarage share price for a specific period which would not be the case with PHM, is the other way around, but I might be wrong.