Forum Archive Index - August 2000

["James S" <jsmalley@e3.net.nz>]

Hi Ted,

 

you can find the info by using the search feature on this website ie put 'warrants' in the input box.  But for a quick run down, the warrants give you the right to buy one share of the underlying stock at some date in the future.  Depending on the warrant you might need two warrants and two payments to get the share or two warrants and one payment.   For example FEGSB require two warrants (ie 2:1) plus ONE payment of $5.50.  Thus at the current warrant price ($1.26) investors would be requiring FEG to rise to $8.02 or higher to be 'in the money' ($5.50 + 2 x $1.26).

 

However (and this is where it gets confusing) warrants such as CENSB require two warrants plus TWO payments to get the share.  Thus at the current warrant price of $0.11 investors would require the CEN share price to rise to $3.22 to be in the money ($1.50 x 2 + $0.11 x 2).  TELSB is also this type of warrant.

 

Hope this helps

 

J.