RE:WARRANTSThePDawg wrote: Hi,
Could someone please help me understand these warrants a bit better. I totally understand how they work, but I'm having trouble understanding how these could possibly be considered undervalued (unlike N stock imo).
They are currently trading around 0.40 cents with a exercise price of $3.15. Therefore N stock would have to go to $3.55 for these to be profitable at these prices? Also, the get exercised automatically at $6 so the maximum upside is $2.85. Am I missing anything.
I'm very interested in adding some in addition to my N stock holding but I thought the price would be more in the $0.20 range. I was surprised to see it at $0.40.
Could someone with more experince please help me understand the valuation of these? Do you think they are a good buy at $0.40?
Thanks
Buying the warrants means you are eligible to purchase shares at 3.15,right? So total of $3.55 as you said. Why do that when you can buy shares now at 1.50? So if someone is about to buy the warrants, they are ripping themselves off. Just buy the shares at 1.50. Makes more sense.