Replies to post #19005 on XpresSpa Group Inc (XSPA)

[radiumsoup]

the con is that they expire (and the market for them is less liquid).

I hold no VRNG stock, only warrants and some (soon to expire worthless, it appears) November call options.

[mantis]

if stock falls to 2-3 and stays there for 3 years you will lose all the premium on warrants. 100% loss. If you own stock them you lose much less. Buying warrants is cheaper if you are sure that you are going to make $.

[nsomniyak]

One further distinction. As a warrant holder you would not participate in any shareholder votes. Not an issue for retail players whose votes would not have significant influence anyway.

[tduggan]

The biggest con would be if PPS doesn't appreciate significantly. For example, say the PPS topped out at $7.00.

IF you bought a share today @ $3.50, you would have 100% ROI at $7.00, whereas the warrant you bought today would only bring you about 40% ROI @ PPS of $7.00 ( $7.00 less $5.05 excercise price less $1.40 warrant cost gives $0.55 ROI on your $1.40 or about 40%).

Does that make sense?