Forum Archive Index - February 2000

[neil.selman@gfmb.co.nz]

Steve,

You bought Contact Warrants at 7 cents?

With two warrants to one head share and a strike price of $350, you are punting
on the Share Price being over $3.64 in June 2000.  BIG Call.

I'm not a great fan of warrants - they are the domain of traders.  You own
nothing but a punt that the share price will be greater than the strike price at
time of conversion and as there are so many factors that can move a share price
I view it solely as a punt.  At least with a head share, in say Contact, you own
a piece of the action and get a dividend and a say in how the company operates
etc...

I view the head share as good a buy as the NZSE has at present.

Neil


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