Any Stock Warrants Message Board

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From: skywalker44	5/21/2009 1:06:50 PM
	of 1916

KPPCW Warrants Revisited These Kapstone Paper and Packaging shares (KPPC) have traded as high as $4.18 intraday as the shares continue to creep higher towards the $5.00 exercise price. The 8/15/2009 warrant expiry is less than 3 months away. The KPPCW warrants trade for 16-19 cents, roughly. I remember the Nam Tai Electronics warrants (NTAIW), circa Spring 2002, that made a run at the exercise price right up through the last day, but it was too little and too late. The NTAIW warrants expired worthless and the shares subsequently soared in the days and weeks after warrant expiry. In the case of KPPC shares, will there be enough juice to get the shares safely over the $5.00 bar and put the warrants in a position to be exercised? Some might pursue a hedging strategy of "shorting against the $5.00 box" between now and mid-August, as some like to say, and buying warrants (essentially $5 call options at this late stage) in case the shares were to soar. "Time decay" will begin to play out with KPPCW in the coming weeks if KPPC shares are stuck in the high 3s or low-to-mid $4 range. Will continue to keep a watch on this one. To "go long", I'd want to buy a KPPCW warrant for several pennies at most, not the current 16-19 cents.