beware the C warrants?to all warrant lovers. In looking at the C warrants I note that the stock is at $3.60 and the C warrants are trading at $1.72!
According to CBJ's documents the C warrants exercise at $3.75 plus one warrant equal one share. Given that they are good until Aug/2008. That means that the warrants are trading at a premium of $1.87 (ie., $3.60-$3.75-$1.72). That is an absurd premium unless of course you want to pay that much for a 4.5 year option on CBJ. At these prices you would have to see a stock price of $5.47. If that were the case you would be much better off buying the stock and not the warrants.
I will continue to look at these but folks they are way, way, way overpriced. The time value for the warrants is simply too rich and there are better plays out there.
Of course that is my very humble opinion. By the way anyone done any analytical work, or knows where to point me to help determine the time value of an option for a given stock? Appreciate your thoughts.