Summer doldrumsI have been thinking more and more about those $0.35 and $0.30 warrants expiring in September. I think there are more of them left than some think. Many warrant holders still own at least some of the stock that gave rise to their warrants as they wait to see if news drives up the regular stock price prior to warrant expiration. The idea being that they will sell their regular shares to exercise the warrants and pocket any difference. If they start believing the stock is going to languish now through summer (perhaps due to a few items such as continued general market malaise due to fear of Fed rate hikes to fight inflation, Ukraine war, supply chain issues, fear of China/Taiwan hostilities, high gasoline prices, general summer doldrums, etc.), why would they hold on to their regular shares? They won't. They will sell now to raise cash to exercise those warrants later in September. Anything they get above the warrant exercise price is a bonus. That's a long way down from where we are trading now. Or we get taken out too cheap. Also not a palatable option.
After these two tranches of warrants are cleared away I see a more digestible scenario. Sometime in September. Although you never know what news rears its head or when, those who did not want to sell because their volume of shares might drive the price down may wish they had.