Everyone is an expert, page-4

re: Macquarie in panic mode ... Hmmm... have crunched some numbers for the faithful.

HDRWMA last friday closed at $0.14 at I/Vol of 159% ...

Last at $0.083 (HDR at $0.80) means Macquarie have panicked and have tanked the I/Vol to a computed 105% to avoid an expensive payout with todays ann ...

HDRWMB has faired slightly better with friday I/Vol at 129% and today has settled at 122% ... the trap however is the higher STRIKE OF $0.90 so be careful.

By comparision CBAWPM I/Volatility is 20.0% and leverage 22.9 ... different animal for sure but todays 40.7% drop in HDRWMA is the reality of what can happen when I/Vols are ramped by greedy Issuer's who then desperately 'claw-back' to save their skins.

HDR has only eased 6.9% today and the Warrants should have followed suit ...

Lesson: Beware Warrant offerings where only a single Issuer exists as they have no competition and can ramp I/Vol thru the roof as blatant opportunism ... and as I warned last week can 'claw-back' at a moments notice ...



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