United Insurance Holdings Corp (UIHC)

[stanley01]

Gilead-regarding FMGQW

I noticed there is some chatter about FMGQW on the VMC Motherboard. However, since I am not a paying member, I cannot post. If you could be so kind as to post this message for me on the board to inform some investors, that would be great!!

FMG Acquisition Corp's Warrants (FMGQW) are priced at a measly .25! The warrants took a huge dive on small volume during this panic going on in the market. Current stock price of FMGQ is $7.51. Which means if this deal closed today, the warrants would be valued around $1.51. The shareholder's meeting to approve of the merger is scheduled for September 29, 2008, which is just around the corner. Chances of the merger being approved is 99.99%. According to the 8-k filed on 3/31/08, the officers and directors own 19% of the common stock, Bulldog Investors, whom have pledged to vote in favor of the merger own 14% of the common stock, and HBK Investments, whom have also pledged to vote in favor of the merger, own 9%. Combined, all 3 of these groups own 42% of all of the common stock. All we need is 50% to get the shareholder approval.

Per the company's prospectus
"Each warrant entitles the holder to purchase one share of our common stock at a price of $6.00. Each warrant will become exercisable on the later of our completion of a business combination or October 4, 2008, and will expire on October 4, 2011, or earlier upon redemption."

Also, please note that the company plans to list its stock on the Nasdaq or AMEX upon completion of this merger.

The company's original prospectus filing:
http://google.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=5465112-817-526713&type=sect&TabIndex=2&companyid=745916&ppu=%252fdefault.aspx%253fsym%253dFMGQW

If you want to see similar companies with warrants and their performance, take a look at HYDQW, PRIMW, and HEK.WS. All of these stock warrants have given absolutely staggering rates of return. I think FMGQW is next.