Since the warrants were issued, I have felt them to be a far better play than the stock and have purchased warrants on an almost 10 to 2 basis to stock. Thus far I have been rewarded leverage wise for that decision.

However, my main concern with the warrants is their liquidity. The last three months only 450k of warrants have traded at an average of 7k or so a day. There have only been two days over 40k and 7 days of 20k or more. Considering the warrants were in the 50 to 60 cent range for most of that time, the trading has been thin to pathetic.

It will be interesting to see if the warrant volume picks up. If it stays the same and things work out how we all want, the warrant holders may need to sell at a fairly steep discount if they are not willing to convert the warrants into shares. Time will tell.