November 03, 2010
– Comments (7) |
RELATED TICKERS: DJSP
What's the difference? DJSPW is much cheaper- its at 5 cents. Was a 10 dollar stock in may. What's the difference equity wise? Could be an interesting speculation
They are warrants to buy shares at $5.00. This makes sense, since the warrants have hit $8.50 in the past year and DJSP has been $13.50 in the past year. If you're not familiar with warrants, they're like call options, or the option to buy shares at a certain price.
The warrants are callable if the stock itself exceeds $10 for a period of 20 out of 30 trading days. They can be called at $0.01 and require 30 days' notice before calling, at which time investors will surely exercise their warrants. I can't see any information on a deadline of any sort. It seems the only call or expiration provision is the price one just mentioned.
I got this information from the 20-F filed on 4/2/10 for the period ending 12/31/09. If there's really no expiration date, I'm thinking of jumping in for a tiny amount (fraction of a percent of my assets).
I'd look long and hard at whether these have an expiration date before jumping in, but I can't find one at first glance. Do let me know if you find any.
Found the expiration date: 8/11/2012. Let me know if you find something that says otherwise.
I know what warrants are, thanks for doing all of the date research and stuff though. Probably a horrible deal but could be a good gamble
ýou gonna speculate on it babo?
I'm considering selling the DJSP I own and buying DJSPW with the proceeds. I would then allow things to play out as originally planned. I don't plan on committing any new money if I go this route.
In order to make money off of DJSPW, the warrant doesn't necessarily have to be "in the money" but the stock simply hast to go higher than it is now by a good amount. If the bankruptcy scare goes away and it starts to recover to $3 or $4 before August 2012, I'm sure DJSPW would climb decently from the current level, even if the warrant remains underwater.
I figure 21 months would be a good amount of time to let things play out. Either Fannie and Freddie would send foreclosure filings back to DJSP and business would ramp back up, or DJSP will permanently have pathetic volumes compared to previous levels.
Well they have to reach 3 by sometime next year for it to have any real value. All the negativities will probably keep the warrant price down if it doesn't hit 3 till a few months before expiration date
Still, ridiculously high potential