HCEW - gluefactory14 Feb 2007 20:05
The premium is much to do with the longevity of the warrants. In this case we are looking to June 2008. Clearly this is a fast reviving situation, thus people who think that there is plenty of upside will get more bang for their buck by buying the warrants. If the underlying ordinary stock goes to £1.00, say, then the premium of one and a half pence to tuppence is marginal when you have bought the option to subscribe to buckets of shares as to far less outlay than if you had bought the underlying ordinaries. My broker who also bought some stock, after me, bought the fully paid, on being asked about it he told me that he wanted the grown up version. The amusing thing is that % wise they have not performed as well as the warrants, so much for brokers! k7pws in my view is right not to sell, there is it seems much, much more to come. Today's news was for me a surprise, I was expecting something else altogether, this to do with another product. If you like this shsre I still think that the way in is through the warrants, the downside is that they are hard to get hold of.I have been going on about this way in forever, both here and on the HCEG site, at last a few people are beginning to listen, I just wish for everyone's sake they had listened when they were 0.21 of one penny in December.