Joe I posted the below on the yahoo mnkdw board under the thread " bargain basement price" . A thread I started in November and have been updating it every so often. I updated the below today. Please tell me what you disagree with.
"The 2014 $2.5 calls are at $1.40 as of today. If you bought 10 contracts you would control 1000 mnkd shares for one year at a cost of $1,400. To exercise the additional cost would be $2,500 for a total cost of $3,900 with no fees or commissions. Total cost = $3.90 per share
The 2015 $2.5 calls are at $1.70 as of today. If you bought 10 contracts you would control 1000 Mnkd shares for two years at a cost of $1,700. To exercise the additional cost would be $2,500 for a total cost of $4,200 with no fees or commissions. Total cost = $4.20 per share (8% premium once exercised over the 2014's).
The warrants are at $1.18 as of today. If you bought 1,667 warrants you would control 1000 mnkd shares for three years at a cost of $1,967. To exercise the additional cost would be $2,400 for a total cost of $4,367 with no fees or commissions. Total cost = $4.37 per share.
So per the calculations above it would appear the warrants are getting closer to where they should be trading compared to the 14' and 15' $2.50 options. "
