Replies to post #5981 on Cemtrex Inc (CETX)

[GeT_NiCE]

I just want to mention because I love to do the math...

If the share price reaches $11.3, then all of your exercised subscriptions will be "paid for" by the cash value of the common stock warrants ($11.3 [share price] - $6.3 [exercise price] = $5 x 2 warrants/subscription = $10).

That would be a complete offset of the purchase price of the subscription. Of course if you exercised or sold the common stock warrants at that point, you would still retain all of your preferreds at whatever price they might be trading (if they're trading) as well as the associated dividend income.

All that said... IF:

(1) you see a target of at least $11.3 in a tolerable (to you) time-frame

AND

(2) you have the capital to exercise the subscription rights before Jan 20

AND

(3) you have enough risk tolerance to stomach a bit of a gamble

THEN you should probably exercise your subscription rights.

PLEASE PLEASE PLEASE PLEASE do your own DD, and try your best to understand what you are getting into!

$CETX to the mooooooon!



EDIT: I don't mean to say that there aren't other perfectly valid reasons for exercising your subscription right, rather, if you agree with (1)-(3) it's a no-brainer. Theoretically, your purchase price will be paid back in ~12 years (including opportunity cost) thru the dividends.

[Nealio]

John,
Thanks for that summary! I'm not that good at reading those long announcements.

One question: so for the warrants you get that can be exercised at $6.30; at what date can you exercise them? Or can you do so anytime after you receive them?

Best,
Nealio