Warrants are like Gravity to a stock’s share price.A share price will always fall back towards the warrant’s exercise price. The larger the number of warrants the greater the pull holding the share price in place. The impending cheap warrants that are expected to appear soon are adding to the gravitational pull.
What will it take to reach escape velocity? A buyout, a good joint venture partnership or a cure for bladder cancer? My thinking is that any one of these will give us the lift off we know is coming. In the meantime, I’d like to see the private placement announced so that we can get it behind us and move on. Please, no more expensive news releases that don’t really add any value to the company. There is no sense in the company moving to the brink of financial ruin just to pacify a few shareholders that don’t understand what they are holding anyways. Look at the current warrant holders. Do they seem worried? I calculate around 13 million warrants at37.5 cents are left in strong hands that won’t be exercising them anytime soon.
With around 39 million warrants andoptions at 54 cents or less this stock isn’t going anywhere fast unless one of the three of the above events were to occur. Of course, I could be totally wrong, but, that is what makes this so much fun.