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From: tbul@trsvax.UUCP
Newsgroups: net.invest
Subject: warrants - part 12 - (nf)
Message-ID: <52900024@trsvax.UUCP>
Date: Fri, 31-Aug-84 13:35:00 EDT
Article-I.D.: trsvax.52900024
Posted: Fri Aug 31 13:35:00 1984
Date-Received: Mon, 3-Sep-84 10:28:18 EDT
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Nf-ID: #N:trsvax:52900024:000:1358
Nf-From: trsvax!tbul    Aug 31 12:35:00 1984

#N:trsvax:52900024:000:1358
trsvax!tbul    Aug 31 12:35:00 1984

WARRANTS
--------

	The prices of warrants will fall more rapidly that their
	corresponding stock issues in a market panic.

O	Does the warrant have a long life ahead of it?  This should be on
	the order of (at least) 2 years and preferably much higher.  It
	should be long enough for the value of the warrant to double.
	Five years is a nice time span.

O	The leverage factor must be at least 2:1 and preferably much
	higher (4:1).  If there is no leverage, sell the warrant.

O	The stock should be very volatile or else the warrant has little
	chance of increasing in price.

O	The stock should have a potential for future growth.

O	The warrant should be non-callable.

O	The warrant should also be protected against dilution (such as a
	stock split).  Check the certificate as there it is stated if the
	warrant is protected against dilution.

***********************************************************************

The above material was borrowed from the following sources:

ANYONE CAN MAKE A MILLION - Morton Shulman
TOTAL INVESTING - Thomas J. Holt
PSYCHOLOGY AND THE STOCK MARKET - David Dreman
CONTRARIAN INVESTMENT STRATEGY - David Dreman
STOCK MARKET PRIMER - Claude Rosenberg, jr
INVESTMENT ANALYSIS AND MANAGEMENT - Plum and Humphrey
HOW TO MAKE MONEY IN WALL STREET - Louis Rukeyser
THE ONLY INVESTMENT GUIDE YOU'LL EVER NEED - Andrew Tobias