I hold EXPEW warrants to purchase 100 shares of EXPE at $52. I have until 2009 to exercise the warrants (per the USAI/EXPE merger proxy). Here is the simple math:
I pay $5200 for 100 shares of EXPE and forfiet the warrants. I sell the stock for $8200. My profit is $3000
I sell the warrants for $4700. My profit is $4700.
My point that no one seems to understand is that the warrants WILL NOT BE EXERCISED. They may selloff like mad but it will not effect EXPE. I still have'nt seen an explaination of how the warrants will affect the stock price because there is not one.