OTCPK:EMMBF - Post by User
Post by
10bagson Jan 12, 2017 12:12pm
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Post# 25699666
EMC.wt warrant a good bargain, no?
EMC.wt warrant a good bargain, no?
I'm surprised how cheap the warrants are relative to the stock. The warrants should be at 2.57 based on the current stock price of 3.32.
The warrants allow you to by 1 share at 1.75/sh up to Dec. 6, 2019.
So theoretically speaking, if you buy the warrant now at 2.20 and exercise it, you'd be effectively buying the stock for 3.95 (2.20 + 1.75). Of course, if the stocks falls below 3.95, the warrant will trading below 2.20 and should the stock fall below 1.75 the warrant would be worthless (except for any time value).
IMHO I think once the bought deal closes, we'll be testing 5.00/sh. At that level the intrinsic value of the warrant is 3.25, although it'll probably trade at a discount, as it does now, for whatever reason.........but 2 or 3 years down the road, whatever price the stock is trading at you'll be able to buy it at 1.75/sh if you have warrants.