HODL the line !!
(i.imgflip.com)
You're viewing a single comment thread. View all comments, or full comment thread.
Comments (147)
sorted by:
Once its clear that the investment is a good investment, the train would have left the station. For instance the opening price was $10, and closing price was $65. You know it was a good deal (atleast for day 1), but you cannot buy it at $10 anymore. Will it go to $200 or $1000 or to the moon? One can only wait and see until it happens.
I would say the better way to do it is to invest just a little bit - like $100-$200 and buy the DWACW (Warrants) that closed at $11 yesterday. These warrants allow you to purchase the actual shares DWAC at $11.50. So lets say you buy 10 warrants at $11.5 costing you $115, at a later date if you see the stock shooting higher and higher, you can use the 10 warrants to purchase the shares at $1150, regardless of how high the share is at.
If the stock does down and loses value, you only lose $115 - as long as you are okay losing that, you are good.
Each warrant allows you to buy HALF a share.
For instance, if you have 10 warrants, you can buy 5 shares.
That's why the warrant (DWACW) price is (DWAC - 11.50)/2
DWACW is actually trading a bit under that formula, because of the 'extra effort' and/or risk of converting warrants into shares.
Note: I am not a seasoned trader, but I've been reading up over the last few hours.
This is the language from the SEC filing:
This is referring to the Unit - DWACU I believe. And the next line explains what a warrant is:
That to me reads as one DWACW allows you to purchase on DWAC. Please let me know if I am reading this wrong. Its possible I havent read the remaining conditions in the rest of the document.
From the 8K filing on 9/27: "No fractional warrants will be issued upon separation of the units and only whole warrants will trade."
So 2 DWACU = 2 DWAC + 1 DWACW, but 1 DWACU = 1 DWAC. Along with that 1 DWACW + $11.50 = 1 DWAC.
Yep, thats my read too.
BTW, do you know the conditions for converting DWACW+$11.50 -> DWAC ?
Can we do it anytime? Can it be done only after merge? How do you do it?
As I understand it...
DWAC is the 'regular stock' (Class A Common)
DWACW are the half-warrants - you need a 'full warrant' (two DWACW's) to have a full warrant, and therefore the right to buy one (normal) DWAC at $11.50 (Note that this can only take place after a certain time period, and/or after the merger, etc - which is why these are worth a little less than a straight formulaic conversion from DWAC -- a bit more 'risk'.)
DWACU are 'units' - kind of a 'combo pack' - one DWAC and one DWACW
The description above matches (closely) to the closing price ratios of each item. (In other words, if DWACW's were full warrants, they would be at nearly double the price.)
From the 8K filing on 9/27: "No fractional warrants will be issued upon separation of the units and only whole warrants will trade."
So 2 DWACU = 2 DWAC + 1 DWACW, but 1 DWACU = 1 DWAC. Along with that 1 DWACW + $11.50 = 1 DWAC.
I just re-read (scanned) the SEC filing - I may be wrong about DWACW's being half warrants. It looks like only the DWACU (Units) issue half-warrants, but once the warrants are traded, they are only traded in whole amounts. But that does not line up with the current valuations relative to each other. Strange.
Either way, I think the 'explosive' portion of the 'warrant train' might be over. When you could get them at $0.50, then you could see 2000% growth. Now it is only slightly (15%) better than going with straight DWAC (and does not have the conversion restrictions).
Again, I am not a trader.
Thanks for the clarification, greatly appreciate it.
Definitely. I put in order before markets opened and the warrants were already trading at $4. For me, though, warrants are less about explosive growth and more about hedging my bets. If I spend X amount on warrants, it allows me to invest 10X later on in future when the merge happens, TMTG shoots to the moon and what not. But if none of that happens, I only lose X and not 10X
(The factor of 10 is just an example, in reality that factor depends on where the stock price and warrant price are)
Thanks for this!
Need to keep the mods happy...
God bless u fren, and I hope you guys can get in on the action. Even one share would be quite something to pass on to your grandkids someday!
So I grabbed 100 warrants at a little over $4.00. So paint me a scenario using real numbers if things were to go real well. And since the warrants are good until 2028 do I just hold for 5 years as the stock goes crazy? Then what ever the value of my warrants is, I can exercise them and get as many of the common stock as possible at $11:50 a share? Is that correct? That could be Uuge!