posted
I am copying and pasting from another area of forum as I hope someone can shed some info about this?
I own some shares of Federal Mogul (yes I bought them below .50). Fed Mog is currently renegotiating its chapter 11 filing, as far as I understand. To get to the point...
quote: Current shareholders are slated to get warrants under Federal-Mogul's Chapter 11 plan. Existing shares will be canceled.
posted
Depends on the warrants terms. Last ones I had were good to buy the new stock at a specified price for so long.
Posts: 3417 | From: Cleveland, Ohio | Registered: Jan 2000
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quote:Originally posted by Deluxer4life: Dustoff101,
.....don't quit your're day job!
------------------------------------------------- Hey mister 4 post, thats what ya call humor... If ya hang around for awhile, maybe that water behind your ears will dry up..........
When we post LOL after a sentance or an entire post?
That generaly means *take with a grain of salt* or the post may be entirely a sarcastic remark, *made as a joke*
We play hardball around here, a softball breaks the tension once in awhile,,,,when done in a respectful manner.
posted
quote: -------------------------------------------------------------------------------- Originally posted by Deluxer4life: Dustoff101,
.....don't quit your're day job! --------------------------------------------------------------------------------
------------------------------------------------- Hey mister 4 post, thats what ya call humor... If ya hang around for awhile, maybe that water behind your ears will dry up..........
When we post LOL after a sentance or an entire post?
That generaly means *take with a grain of salt* or the post may be entirely a sarcastic remark, *made as a joke*
We play hardball around here, a softball breaks the tension once in awhile,,,,when done in a respectful manner.
posted
Deluxe, I really don't mind being made a joke of in fun, but do not ever make fun of my alcholic Pot smoking Iguana when she is off on a bender!!!
Posts: 10729 | From: oregon | Registered: Feb 2005
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posted
OK, enough is enough.. Lets get back on Topic about Warrent's, in all honesty they're is plenty I would like to learn about them..
Posts: 10729 | From: oregon | Registered: Feb 2005
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I bought warrants once and got burned because they expired, that was back when I started trading and knew nothing about doing DD. I learned the hard way. After that I just stuck to big board and penny stocks. Never had an interest in learning warrants and options trading. Good luck with your findings.
Posts: 39 | From: Chicago, IL | Registered: Oct 2005
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posted
grrr..I thought you guys were experts. Anyhows, here's what I found out...
"For example, a company emerging from bankruptcy with its new stock value at $10 per share may issue five-year warrants with an exercise price of $30 per share. There is nothing to be gained by the holders exercising these warrants and buying the stock for $30 per share when they can buy it on the market for $10. But if the stock price happens to reach $40 per share before the five years is out, it would make sense to exercise the warrants at $30 per share and then sell the stocks on the market for $40, if desired"
That's the best explanation I can find. Guess I will have to email Fed Mogul and try to find out what terms of the warrants they will issue.
Posts: 34 | Registered: Oct 2005
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posted
Zenith, If that the case, then warrants are not worth the risk. Using your findings as an example, you would be over paying by 200% for a chance to make 25%. JMO. Have good night. -Deluxer
Posts: 39 | From: Chicago, IL | Registered: Oct 2005
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