So I started playing around with penny stocks several months ago, did OK, made a little bit of money. I bought a certain stock back in early June, the price per share was .002, so I got 500,000 shares for $1000. It's been sitting there doing nothing since I bought it, and then last week the company put out a press release saying that they are issuing two "warrants" for this stock. Long story short, for anyone who owns shares before July 8th, they will be able to buy the same amount of stock at a set price. The first warrant, Warrant A, is set at .0008 per share, and the other one, Warrant B, is set at .003 per share.
So, since I own a half million shares, all bought before July 8th, I can take advantage of both of these warrants, and end up with a million shares of this stock for an average of .0019 per share. But, (and there's always a "but"), no one knows the warrant details yet, and the company has not issued official word to the stock trading companies (Ameritrade, E*Trade, etc), so no one has been able to get their warrant stocks. Part of the warrant says that the warrant shares have to be held for at least a year before they can be sold. When word of the warrants came out, the stock went from .002 per share, up to .0142 per share. This would have been great, except no one knows what would happen if a share holder were to sell his shares off before getting the warrant stock. I sat and watched my $1000 investment go up to $7100, then slowly drop back down again, because I was worried that if I sold my shares, I wouldn't be able to get in on the warrants. Chances are that a year from now, if the company does well, it will be worth a couple of pennies per share at least, and I could make a nice little profit, but there's also a slight chance that the company could do something phenominal, and a year from now each share could be worth a dollar or more, making me a nice BIG profit. I'd hate to do something stupid for a couple thousand dollar profit, and really regret it a year from now.
Word is that this week, some good new PR is coming out about the company, and most likely the price per share is going to rise again. Has anyone that plays with the stock market ever been in this position? I need to know if I can sell the half million shares I have, and still take advantage of the warrants, or if I sell them, am I blocked from the warrants? I've been reading the stock "experts" message boards and forums, can't find anything on this, any advice would be greatly appreciated.
So, since I own a half million shares, all bought before July 8th, I can take advantage of both of these warrants, and end up with a million shares of this stock for an average of .0019 per share. But, (and there's always a "but"), no one knows the warrant details yet, and the company has not issued official word to the stock trading companies (Ameritrade, E*Trade, etc), so no one has been able to get their warrant stocks. Part of the warrant says that the warrant shares have to be held for at least a year before they can be sold. When word of the warrants came out, the stock went from .002 per share, up to .0142 per share. This would have been great, except no one knows what would happen if a share holder were to sell his shares off before getting the warrant stock. I sat and watched my $1000 investment go up to $7100, then slowly drop back down again, because I was worried that if I sold my shares, I wouldn't be able to get in on the warrants. Chances are that a year from now, if the company does well, it will be worth a couple of pennies per share at least, and I could make a nice little profit, but there's also a slight chance that the company could do something phenominal, and a year from now each share could be worth a dollar or more, making me a nice BIG profit. I'd hate to do something stupid for a couple thousand dollar profit, and really regret it a year from now.
Word is that this week, some good new PR is coming out about the company, and most likely the price per share is going to rise again. Has anyone that plays with the stock market ever been in this position? I need to know if I can sell the half million shares I have, and still take advantage of the warrants, or if I sell them, am I blocked from the warrants? I've been reading the stock "experts" message boards and forums, can't find anything on this, any advice would be greatly appreciated.
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