They will raise $116.5M from the warrant conversion. That's $4.57 per share that needs to be considered. The warrants become enticing once you take that into account. I don't consider the common a good investment right now since the upside is limited to (my guess) $11-13 in 2010.
If you take your fully diluted range of $6.48 to $7.36 and add back in the $4.57 cash/per share, you get $11.05 to $11.93. For 2010 your range was $8.00 to $9.12. That becomes $12.57 to $13.69 with the $4.57 in cash added back in.
You may disagree but a company with $100M+ in cash on the books(which after conversion will be half their market cap at current price levels) is a lot more enticing than a company without that hoard of cash; and shareholders will also know they are safe from the threat of a capital raise in the foreseable future, especially since China Ceramics has stated they have planned capex of $40M for the next couple years to add production lines in their new factory.
-Adam
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