Replies to post #10664 on Veltex Corporation (VLXC)

[george8]

How complex it will be, thus will be viewed as negative by the market, to get warrants involved as dividend in VLXC's case!

A stock warrant is an option to purchase a specific number of shares at a particular price during a specified time period.

Especially in VLXC's case, company financial data is hard to come by and difficult to evaluate. In addition, VLSC's common stocks are volotile and volumes normally are low. It would be messy to get warrant tangled with "dividends"... And, the future trading of warrants will be more messy..

Hard cash pay out dividend is the best for Matin to do to gain some points in the market..

[pual]

My understanding is that a warrant could allow one (let's say owning 5,000 shares) to buy additionnal shares at a "presumably discounted price" (let's say in our case at $0.75) within a certain period of time (let's say during 2006).

If you do, you chip in more and sell right away (increasing offer) if there is demand at a price higher than $0.75 or keep them (averaging down).

However, unless a simultaneous share buyback is announced and executed, you are being diluted.

If by the end of 2006 (in our example) you did not exercise your warrants (buying shares at $0.75) then it dies by Dec.31st.

Not being an expert in the matter, I stand to be corrected.