Yea...My rational was simple math. 1000 shares of sltd cost $3200....With that same money you purchase 2700 warrants at $1.25
At expiration date the common is say at $20....So your value is 20k
If you held the 2700 warrants you send the company $ 13,100 to exercise warrants. So you now own 2700 shares of common worth 54,000 minus the $13,100..
Your value is $41,000 ....double the value if you just held the shares.
If one plans on long term strategy, as i do then it does not matter what the warrants trade at. All that matters is where the common trades
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.