hdrwme question for the warrant gurus, page-7

re: hdrwme question for the warrant ... hooter Hi Hooter ... look back as I posted on HDRWME on Sunday last regarding profitability.

The answer to all your questions lies in the hands of Mac as the Issuer MM and whether they continue to play the game.

Remember HDRWMA as Mac tanked the I/Vol from 160% to 60% and the Warrants went from $0.14 to $0.06 overnight. This was done on rumour that WPL would launch a takeover at that time and behind the scenes was the "mates rates" rights issue.

HDRWME I/Vol has peaked at 130% and currently has quietly fallen back to 109% ...

From memory HDR in my exercise since 15/12/03 has risen 110.6% and HDRWME risen 269.2% ... so over that timeframe the Warrant is superior.

If a $2.00 takeover offer was concluded and HDR stockprice rose accordingly, then HDRWME would benefit although it is highly likely that MAC would tank the I/Vol to limit it's exposure.

I am simply describing the inherant risks of holding any derivative and each must make his/her own evaluation of the situation and whether to hold or not.

Cheers ... tight stops.


This is only my view ... read the red stuff.