GHBAW How The Warrants Work
It appears to me that the GHBAW warrants will expire in March of 2011. Just about 4 months from now. At that time, holders of the warrants will have the right to purchase GHBAA stock which is currently trading at $1.85 last I checked for $5. This means that the President and CEO of GHBAA fully expect the stock to be trading at over $5.02 come March. Otherwise they would not have purchased these warrants at $0.02 a piece in mass quantities.
Now why would you buy Warrants over the stock? The answer is simple. Mass leverage. If the GHBAA stock is trading at $7.00 in March when these warrants expire, the GHBAW warrants would be valued at $2 a piece. This would equate to a 133 bagger or 13,300% gain. On the other hand if you just went and purchased the shares at $1.85 a piece today, and in 4 months they are trading at $7, that would only be a 378% gain. Of course with the warrants you risk them being worthless in 4 months, however, that doesn't seem likely considering insiders have bought up most of them.
GHBAA stock is at $1.85 currently. All it needs to do is go up about 200% and we will all be sitting on a 100 bagger in these warrants. Consider a R/M play seems likely that certainly looks attainable GET IT!?!?!
AI
