What would you do?

[mrtorrence]

Imagine you were in this situation, what would you do?

You have warrants to buy 9.5 million shares at 2 cents of a micro cap OTC company currently trading at about 4.5 cents. You also have a cashless exercise option with the following equation for determining what % of the 9.5 million shares you get:

y= 9,500,000[(x-.02)/x]; where x is the average closing price from the previous 5 days

Attached are pictures of the stock's chart from the last 6 months, and a brief summary.

What would you do?

 

[Trader333]

I would leave it alone as there is just too much risk of it dropping to 1 cent which will give you a significant loss in my view.

 

[mrtorrence]

Well remember, they're warrants. I paid basically nothing for them and I don't see any reason why I wouldn't do the cashless exercise. I've got about $30k liquid cash that I could use to buy some of them but I don't see any reason why I would do that with a stock this volatile. So really I just need to time the warrant exercise well, and then figure out how to get rid of the shares efficiently. I think that's where the technical analysis comes in

 

[Trader333]

What is the market capitalisation of this stock ?

 

[mrtorrence]

As of right now it is about $25million

 

[mrtorrence]

Bump

 

[Forexmospherian]

Bump

Bump - Does that mean it's crashed - and its all over ??

 

[mrtorrence]

Haha no I was trying to bump the thread up to get more responses.

 

[mrtorrence]

No I was just trying to get more responses