Replies to post #18 on Sunworks Inc (Warrants) (fka SUNWW)

[stockwolf]

Thanks Alex and Jose, I saw them on TD Ameritrade the other day when Chiink mentioned them but wanted to fully understand what I was doing before buying any. Missed some under $2 opportunities.
I also noticed that what I am guessing is Cowen group (COWN) has warrants listed at $3.50 on level 2.

[JoseSD]

I like the fact that you can have the chance to trade it back...or exercise it. It gives you more power (obviously if the stock goes up...).

That order of 200 @ $3.00 is mine. i just wanted to get in with small amount since the spread is pretty big.

Now wait...I´m not in a hurry.

Thanks Alex and Moon...much appreciated!

[maverick1856]

The 2 key benefits of the warrants are as follows:

Ratcheting clauses - they warrant exercise price will adjust downwards if any stock/warrant sales or conv debt is issued at a price below the $4.15

Exceptional Events - basically in the case of a buyout/merger either SLTD or the new company would buy your warrants from you within 30 days at a value equivalent to the Black Scholes valuation

Otherwise they are LEAPS or multi-year options...great source of leverage for any undervalued and/or growth stock

buy them and either trade them if the market picks up or just buy and hold...