What would you do?

mrtorrence

Newbie
6 0
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?
 

Attachments

Trader333

Moderator
8,502 881
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

Newbie
6 0
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
 

mrtorrence

Newbie
6 0
As of right now it is about $25million
 

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