Naz News, Gappers and FLE's

[mcmike]

COIN danger: warrant call

shorts will push the common down over the course of the next month to destroy the value of COINW.

Converted Organics Inc. Announces Redemption of Class A Warrants
Tuesday September 16, 4:30 pm ET
http://biz.yahoo.com/bw/080916/20080916006651.html?.v=1

The redemption date is October 17, 2008
COINW worth minimum of .25 if not exercised

the Class A warrants are convertible into common stock at an exercise price of $8.25. Each warrant exercised at this price will receive 1.276 shares of common stock.

8.25 + 1 COINW = 1.276 COIN
COINW ~= COIN at 6.47

COINW	 8.25	COIN	1.276 
 0.25	 8.25	6.5	 1.276 
 0.363	8.25	6.75	1.276 
 0.682	8.25	7	   1.276 
 1.001	8.25	7.25	1.276 
 1.32	 8.25	7.5	 1.276 
 1.639	8.25	7.75	1.276 
 1.958	8.25	8	   1.276 
 2.277	8.25	8.25	1.276

above 6.46 COINW will move .127 for every .10 move in COIN

The problem is that arbing shorts can profit by holding the common in the 6.66 area where the warrants are worth only their .25 basic value.

The B wts. with an exercise price of $11 (i don't know what the redemption triggers are) might be a better play if they keep the common pressed down until the expiration date in October.

based on my unhappy experience with the solar warrants of ASTI last year I'd say stay away until just before the expiration and then buy the common