atention warrant guru,s hdrxoa, page-3

Hmmm ... just a quicky response as I haven't investigated the HDRXOA Barrier Warrant you mention.

In general, Barrier Warrants are not priced according to BSOPM modelling so only the Issuer can determine FAIR VALUE ...

Also, leverage with Barrier Warrants relates to how close to the KILL zone (barrier price) you are ... you need to be close to make money but RISK is greatest also ...

The Barrier for HDRXOA is $1.50 and Expiry is 26/08/04.

Suggest you setup a spreadsheet and track HDRXOA for a couple of months to see how is moves according to HDR ...

HDRXOA was trading at $1.20 on 03/06/04 and is now $0.91 or -24% over the last 2 weeks despite the fact that HDR is at record highs ... !!!

Cheers ... tight stops.


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