As everyone knows, the deal was just announced and is very likely to be approved by shareholders. Upon expected approval next month, the warrants would become exercisable at $7.00 w/ share price at ~$9.50. Why aren't the warrants worth more than $.85?
Am I not understanding the terms? Can warrant holders only exercise when the share price of NNA be above $13.75?
Well, the whole argument about book value being close to $7 is really not that important. The company is doing 73% financing 27% cash, so it has 4x leverage. If ship prices recovery a measly 10% from the insanely low price that management bought them at (It would have to go up 55% to be back at the old 2008 highs), the book value would go up to $10.
So yeah, I think the warrants are a good long-term play. I haven't sold any of the ones I bought awhile back at $0.60.
yes. basicly you have to plunk down the 7 if it soars to 13.75 and sticks there. that prevents you from keeping your outlay supersmall, but so what? you can flip 'em at that point if you don't want to keep playing.
not sure earliest exercise date, will have to re-read.