Undervalued Warrants 6/21/2004

Note:  This page is not current because it's intended as an example of what you'll find within the "members only" area of the site.  The "members only" page of undervalued warrants is updated on a quarterly basis.

The following is a table of the stock warrants that our analysis shows to be most undervalued at current levels. This list of warrants is intended only as a screening tool for informed investors...we don't claim to have any special technical or fundamental knowledge of the warrants or their underlying stocks. Currently, we analyze the fair value of about 200 stock warrants.

Warrant terms can often be changed by the issuing company, and the sources of warrant information are occasionally faulty or incomplete in their descriptions of redemption prices, conversion ratios, etc., so it behooves the potential warrant investor to double-check the terms of the warrants. We also strongly advise that the potential investor have some knowledge of the underlying stock.

Warrants are often quite illiquid, and many are priced at penny-stock levels, and so the bid/ask spreads can be quite intimidating. With in-the-money warrants you should not be willing to pay much more than our quoted ask price, whereas with deeply out-of-the-money warrants you shouldn't automatically balk at paying a considerable ask premium. Depending on the liquidity of the warrant, your own purchase may cause the warrant to close at the high end of the bid/ask, whereas when you wake up the next morning you may find the current quote has dropped back down to the bid price, saddling you with a very quick loss on the order of 20% or more. While a disciplined approach to warrant investing can produce returns that considerably exceed those of stocks, it's not for day-traders.

A warrant that we find to be a bargain today will very likely be a bargain a week from now, so this page may be updated infrequently. If the most current prices on the warrant and underlying stock have not changed considerably since our last update, it is very unlikely that our opinion on the warrant has changed.
 

Company

Stock Symbol

Warrant Symbol

Stock Price

Warrant Price

Expiration

Strike Price

Conversion Ratio

McLeodUSA

mcld

mcldw

.55

.16

4/16/2007

1.35

1

Radyne Comstream

radn

radnw

7.97

.96

2/7/2005

8.75

1

XO Communications

xocm

xocmz

3.95

1

1/16/2010

7.5

1

Washington Group C

wgii

wgiil

34.87

6.15

1/25/2006

33.51

1

Metal Management

mtlm

mtlmw

18.19

17

6/29/2006

10.59

2

Immune Response B

imnr

imnrz

1.17

.41

12/10/2007

1.77

1

Delcath B

dcth

dcthz

2.19

1.5

5/20/2008

.775

1

Boardwalk Bank

bord

bordw

14.7

4.16

12/31/2006

12

1

Syntroleum

synm

synmw

6.75

3.32

11/4/2007

5

1


Model Portfolio

The following table shows the performance of our model portfolio. The model portfolio was conceived in April of 1996 with a $30,000 cash position. For the sake of simplicity, every time we purchase a particular position, we invest about $1000. With the exception of those stocks for which we've issued a company profile, all the following positions have been selected solely on the basis of the calculated fair values.
 

Company Stock Symbol Warrant Symbol Stock Price Warrant Price Purchase Price Purchase Date Expiration Strike Price Conversion Ratio Positions
Rockwell Medical rmti rmtiw 3.24 0.60 0.43 5/11/99 1/26/05 4.5 1 2286
LJ International jade jadew 3.75 0.65 1.81 8/11/99 4/15/05 5.75 1 552
Eagle Supply eegl eeglw 2.20 0.12 0.91 12/13/99 3/12/04 5.5 1 1103
Eagle Supply eegl eeglw 2.20 0.12 1.25 3/13/00 3/12/04 5.5 1 800
Rockwell Medical rmti rmtiw 3.24 0.60 1.18 3/13/00 1/26/05 4.5 1 847
Entropin etop etopw 0.20 0.03 2.75 8/28/00 3/14/05 10.5 1 364
Radyne radn radnw 7.97 1.14 4 10/30/00 2/7/05 8.75 1 250
Nexell Therapeutics nexl nexlw 0.05 0.00 .625 2/28/2001 2/28/2006 5.40 .25 1600
Pathmark Stores ptmk ptmkw 6.81 0.66 8.81 7/2/2001 9/19/2010 22.13 1 114
Forest Oil fst ftylw 26.00 3.50 7.75 9/4/2001 2/15/2004 20.84 .8 258
GMX Resources Class A gmxr gmxrw 7.96 1.04 1.35 11/29/2001 2/12/2006 12.00 1 1481
Orbital Sciences orb orb_w 13.65 8.77 2.90 1/31/2002 8/31/2004 4.82 1 690
Interactive Corp B iaci iaciz 29.94 35.35 47 4/30/02 2/4/2009 13.41 1.939 43
Stage Stores "A" stgs stgsw 40.84 26.00 22.9 5/31/02 8/23/2006 15.00 1 87
RELM Wireless relm relmw 2.40 1.25 .12 7/29/2002 2/12/2006 1.21 1 16666
Chiquita Brands cqb cqb_w 19.50 5.65 5.50 8/30/2002 3/19/2009 19.23 1 364
Alderwoods awgi awgiw 12.68 1.01 .21 9/30/2002 1/2/2007 25.76 1 9523
McLeodUSA mcld mcldw 0.55 0.16 .35 10/31/2002 4/16/2007 1.354 1 5714
Agnico-Eagle aem aemlw 13.36 2.91 5.50 1/31/2003 10/31/2007 19.00 1 364
Interactive Corp A iaci iaciw 29.94 9.60 9.20 2/28/2003 2/4/2009 35.1 1 435
Krispy Kreme kkd kkd_t 20.44 0.31 .79 3/31/2003 6/24/2007 50.48 .167 5063
Komag komg komgw 14.50 7.15 5.85 7/31/2003 5/7/2005 9.00 1 342
Imperial Sugar ipsu ipsuw 13.68 2.13 1.05 9/2/2003 8/29/2008 31.89 1 1905
Conseco cno cno_w 18.98 5.25 5.30 10/1/2003 10/10/2008 27.6 1 377
XO Communications xocm xocml 3.95 0.70 .97 11/3/2003 1/16/2010 10 1 2062
Metals USA musa musaw 13.69 3.75 .75 12/1/2003 10/31/2007 18.50 1 2667
Twenty First Century tchc tchcw 22.01 3.75 4.3 3/31/2004 7/31/2005 19.11 .5 930
Spectrasite ssi spcsw 54.00 54.25 46.75 4/30/2004 2/10/2010 16.00 2 86
Syntroleum B synm synmz 6.75 2.25 1.95 6/1/2004 5/26/2008 7.60 1 2051

Portfolio Value at Inception (4/29/96): $30,000.00

Current Securities: $88,035.15

Current Cash: $81,525.14

Current Portfolio Value: $169,560.29
 

Closed Positions

Warrant Purchase Date Close-Out Date Purchase Price Close-Out Price
Co-Counsel 4/29/96 7/96 .43 .18
Great Train Store 4/29/96 8/96 .625 .43
Acres Gaming 4/29/96 10/20/96 .437 8.75
Victormax 4/29/96 12/30/96 .375 0.0
Data Systems Networks 4/29/96 3/10/1997 .25 2.43
Cypros Pharmaceuticals 8/96 11/3/1997 1.25 0.00
Cypros Pharmaceuticals 7/97 11/3/1997 .25 0.00
SunPharm 8/2/96 4/13/98 .25 0.00
Univec 5/11/98 7/13/98 .53 0.84
Infinite Machines 5/17/96 9/98 .375 0.00
Innovir 8/30/1996 10/98 .25 0.00
Bio Reference Labs 7/15/1996 11/98 .688 0.00
Community Financial 4/29/1996 12/98 .563 0.00
Sound Source Interactive 10/13/1998 2/8/1999 .09 0.156
Herley Industries "A" 7/13/1998 2/16/1999 1.34 1.5
Disc Graphics 2/26/1998 2/16/1999 .75 0.625
LJ International 2/22/1999 3/4/1999 2.00 2.50
LJ International 3/8/1999 4/23/1999 2.15 2.50
Dualstar 6/15/1998 5/3/1999 .25 1.125
Chicago Pizza and Brewery 12/15/1998 5/23/1999 .06 .09
Titan Pharmaceuticals 4/14/1998 11/12/1999 .875 3.375
Titan Pharmaceuticals 4/14/1998 11/19/1999 .875 5.375
Dualstar 6/15/1998 1/7/2000 .25 2.53
Questron 9/13/1999 1/7/2000 .72 4.25
Aid Auto 4/29/1996 1/21/2000 .438 0.00
Dualstar 6/15/1998 2/11/2000 .25 7.00
Barringer Tech 6/2/1997 2/11/2000 1.5 0.00
Solomon Page 6/16/97 2/11/2000 .344 0.00
Texas Biotechnology 10/11/99 2/17/2000 .875 6.75
Uniroyal Tech 1/12/98 2/17/2000 3.50 41.375
Vion Pharmaceuticals 4/29/96 2/17/2000 .75 9.125
La Jolla Pharmaceuticals B 5/1/97 2/17/2000 .59 1.15
International Nursing 7/19/96 3/13/2000 .344 0.00
Aris International 10/1/97 4/2000 5.11 0.00
Bogen Communications 11/28/97 3/30/2000 1.125 4.75
Vion Pharmceuticals B 4/29/96 3/27/2000 .75 16.56
Cohesant Technologies 4/29/96 2/2000 .188 0
Aasche Transportation 4/29/96 2/2000 .375 0
Ligand 4/29/96 6/12//2000 .650 3.50
Herley "B" 2/16/99 11/13/2000 3.94 6.18
IMC Global 9/14/98 12/23/2000 .75 0
Paracelsian 4/29/96 9/2000 1.563 0
Texas Biotechnology 10/11/99 12/31/2000 .875 0
Greenman Technology 5/31/96 9/28/2000 1.03 0
New Paradigm Software 7/19/96 8/11/2000 .25 0
TJT Inc 3/30/97 12/22/2000 .25 0
La Jolla Pharmaceuticals 5/1/97 6/2/2000 .5937 0
TMCI Electronics 1/20/98 3/5/2001 1.31 0
Meadow Valley Corp 12/22/97 10/16/2000 1.125 0.0
US Laboratories 6/28/2000 6/18/2001 .94 3.25
Energy Search 11/10/1997 6/20/2001 3.50 .80
SFBC International 11/27/2000 7/3/2001 1.25 20.7
Digital Recorders 5/17/96 6/22/2001 .688 0.0
Help at Home 9/1/97 12/5/2000 .625 0.0
TJT 3/30/97 12/22/2000 .25 0.0
New Paradigm Software 8/11/2000 6/22/2001 .25 0.0
Neotherapeutics 5/17/96 9/26/2001 4.00 0.0
SFBC International 11/27/2000 8/21/2001 1.25 8.05
Elan Class A warrants 2/14/2000 12/31/2001 40.75 51.5
Elan Class A warrants 3/13/2000 12/31/2001 46 51.5
Return Assured 5/15/97 4/10/2002 1.625 0
Integrated Surgical 5/15/97 4/10/2002 .75 0
Andean Development 5/15/97 4/10/2002 .75 0
Digital Video Systems B 7/15/97 4/10/2002 .62 0
Digital Video Systems A 2/2/98 4/10/2002 .43 0
Productivity Technologies 9/15/97 4/10/2002 .875 0
Factual Data 8/14/98 4/10/2002 2.625 0
Phar-Mor 3/15/99 4/10/2002 1.00 0
Washington Group 6/11/99 4/10/2002 3.5 0
Supergen B 11/25/97 8/12/2001 .9 0
Tech Electro 5/11/1998 11/30/01 .91 0
Chicago Pizza 10/15/97 3/8/2002 .25 1.1
Hemagen 3/17/97 4/30/2002 1.125 0
Farmstead Telephone 9/15/97 8/12/2001 0.25 0
Advanced Elec Support 2/2/98 2/13/2002 0.5 0
Mooney Aerospace 3/9/98 8/31/02 1.09 0
Questron 9/13/99 3/5/2002 .72 0
Nam Tai 4/28/2000 11/24/2002 2.82 0
Video Network Comm 4/30/2001 6/15/2002 .80 0
Nuwave 7/31/2001 7/30/2002 .23 0
Taser Industries 10/31/2001 2/3/2004 3.35 118
Digital Descriptor B 5/17/96 1/2/2004 .56 0
Interactive Systems 9/15/97 1/2/2004 1.75 0
Encore Medical 11/10/97 1/2/2004 1.18 0
Uniroyal Technologies 1/2/98 1/2/2004 3.5 0
Harvey Electronics 7/13/99 1/2/2004 .38 0
Collegiate Pacific 1/31/01 5/20/2004 .87 4.45


 

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