I wanted to respond to your post with some straight facts, track. I take no offense at your statement, have no quarrel with you, and no need to prove myself to you. However, these are the straight facts:
I am not sure what you mean by "BB" stocks. Bulletin Board? I will have you know that I use a classic Value Investing Methodology I developed my self, mainly in high technology. I have gotten a 30% return on invested capital in 2007 thus far. I am doing well this year, as my picks and timing are superior to those of last year. uWink fits in the mix as a bit of a different beast, as it does not meet the criteria I usually set for a stock. But, it was also my biggest money-maker of my entire trading career, and is roughly 25% of my 2007 profit to date. As for education, that is OK. I have a Finance MBA, which has helped me alot once applied properly.
There are no ulterior motives with me. I am here for factual, good discussion. In the last few weeks it has been more interesting. I like to be challenged.
I have no interest in mutual funds and intend to maintain my own portfolio over time. I am doing fine.
I am quite a risk-taker compared to most investors. Lately I have been negative on uWink. Well, the facts speak for themselves with this stock. I don't need to defend a negative opinion on a stock that has gone down.
Your post was quite informative on how a Warrant is accounted for and made for interesting reading. I was looking for more thoughts on how that impacted the stock price. It was hard to decipher what you were saying. The fact that is shows up on the Balance Sheet as an Authorized Share is nice to know as much as the Outstanding shares showing up on the Balance Statement and diluting the stock. And when a Warrant is exercised it has the same dilution affect as any other type of offering. I have observed that many times. But that is not what the Buyers are thinking about when they buy this package. They are pricing the components and looking at the Value. They are also Risk-averse and demand a premium. So I was wondering what was the direct effect of the warrant on the stock price that could be commended with the offering.
Anyway, if you don't want to comment on the price of the offering and how the warrants affect that, that is OK. I posted my opinion.
I will continue to post on this forum.
