Warrant is a very risky instrument. It goes both ways. If mother share goes up, warrant should follow and vice versa but still have to look at warrant exercise price & expiry date.
For GP, exercise price is 0.95 & will expire Sep 2014 too. Now mother price only 0.465. If TM really merges with p1 but only offer lower than 0.95, warrant will be worthless.
If P1 is sold for 1.2b - 1.5b - that's over 1.50 per GP share.
Say conservatively 1.20 per GP share - this makes WA worth at least 0.25. Anything more is bonus.
So why not WA?? Of course worse case scenario maybe 1.00 or below, which makes WA shit. But it does not make much sense, P1 definitely worth much more than that.
Everybody know GP going to close shop soon if no new investor, do you think TM will give good price? just like you want to sell ur house urgently, cheap cheap also sell.
hope this is not going to happen coz i also bought some
HIgh risk high return, you can't sure when the deal going to annouce, otherwise everybody is buying this counter and be the millionaire. For my personal opinion, current invester better hold this counter, rumours might be true.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
changlk03
1,267 posts
Posted by changlk03 > 2014-03-25 17:37 | Report Abuse
oracle, u have your newsgiver, just go and verify how genuine is it instead of worrying here..