3SOF

These are warrants on CAFE with an exercise price of $5.50 that expire July 21, 2007.  They closed today at $1.72.  Many mistakenly think they expire next week, but they extended the expiration 2 years on April 1:

http://biz.yahoo.com/e/050520/cafe10-q.html
"Extension of Warrants Expiration Dates

On April 1, 2005, Hosts Board of Directors approved the extension of the expiration dates of 1,150,000 warrants to purchase common stock issued on July 21, 1998 and 32,692 warrants to purchase common stock issued on June 21, 2001 (the Warrants). The Board extended both sets of Warrants until July 21, 2007, subject to further extension. The Warrant exercise prices of $5.50 and the other terms of the respective Warrants remain unchanged."

The current price would make sense if the warrants expired next week, but with 2 years left, they should be much higher. If you plug in the parameters into any Black-Scholes or similar options pricing model and you'll see the warrants should be at least 50-100% higher than they are.

Just last week, on July 5, CAFEW was at 1.32 while CAFE was at 3.15. Now, with CAFE over 3.50 higher, CAFEW should be way more than .40 higher, especially since they're now in the money over $1. If CAFE continues higher, CAFEW will go up dollar for dollar with it, but if CAFEW crashes back to 3.15, it should stay around the 1.32 it was at last week.  If CAFE goes to $10, CAFEW will triple from here.  Great low-risk, high-leverage way to play CAFE, which has huge potential with its 3 million share float, $30 million market cap, Wal-Mart contract, and lots of attention from traders.

This SmartMoney article gives a good overview of the CAFE situation:
http://yahoo.smartmoney.com/onedaywonder/index.cfm?story=20050712&afl=yahoo

The confusion about the expiration date has created an amazing buying opportunity.

Hi VikingFan, I'm a Titans fan! The Vikings going to be any good this year?
Here is a chart to go along with the info you posted.Up big time today.Are you holding position in this?
Record Price High
Record Price Breakout
% Gainer
Average Volume (3 months) 23,809
% Change Volume + 1,268.27
Close above the 50- day EMA
Close above the 13-day EMA

News Link 2 Articles today
http://finance.yahoo.com/q/h?s=CAFEW

Hi setravis -- Yes, the Vikes are going to be awesome!  They'll finally have a defense.  The big question is how good will the offense be without Moss.  It'll be interesting to see how the Titans do without Mason.  If McNair, Brown, Calico, and Bennett can all stay healthy, their offense should be fun to watch...

Thanks for posting the chart.  I don't know how to do that yet.  Can you please also post a CAFE chart?  Since CAFEW is a CAFE warrant, it really trades based on how CAFE does.

Yes, I hold a position in this.  It's one of the best opportunities I've seen in a long time given the huge upside potential and very limited downside.  I'll be surprised if it's not significantly higher in the coming days, but I'm a bit biased  .

I also like this play as long as cafe keeps going up.  I remember the dsti warrants (DSTIZ and DSTIW) followed DSTI up over these past 2 months.  They were also dirt cheap, hopefully the result will be the same with cafew.
Vikingfan last year the offense slumped big time with Moss out.  He changes the entire way a Defense has to play as you know.  I think their offense will miss him dearly.   The Saints finally realize their potential and mature this year. Look out NFL.

Yes, I made out very nicely with DSTIZ.  This one has the added factor that many thought it expired next week and thus it's only .40 higher than last week when CAFE was 3.15.  Some may have shorted it because of that -- I know of at least one fund manager who did that but then realized his mistake after looking at the filings.  If others did the same, it may also be in for a short squeeze...

Yes, Moss did affect how teams defended the Vikes.  However, they're getting two of their key blockers back in Kleinsausser and Rosenthal, and Williamson's about as fast as Moss, though very raw.  They'll also be running more and have a healthy Bennett (for now).  I've been waiting years for the Saints to play up to their potential, not that different from the Vikes recently...

The Chart:   

Looks like hedge funds and momentum players are going to be on CAFE today.  If CAFE hits double digits, CAFEW should go to 5+.

Hooolllly Mackeral.........I've n ever seen anything like it. My super-applause for notifying us of this yesterday.....Guess who is excited as all get out....

Quote from: VikingFan on July 13, 2005, 08:43:41 AM
Looks like hedge funds and momentum players are going to be on CAFE today.  If CAFE hits double digits, CAFEW should go to 5+.

Great anaylsis on the warrants.  CAFEW is up 115% on the day right now.  Applause!

This one was amazing to watch today  , and it looks like it still wants to go...congrats to all who are in it...

Applaud VikingFan - Welcome. My bid of 2.10 got laughed at in Pre-Market. Couldn't get on. I will always be on the look out for your posts in the future.

great eye VikingFan!  (applauded and again)  but watch out for the Falcons this year and the Browns...hehe 

Could someone explain, to me, what's the difference between CAFE & CAFEW? I don't get it.  Same company. Different charts, but following one another up. Which is a better one to buy into? Or would it matter at this point TIA!!

[email protected]

Anyone think this will go up tommorrow too ??

Yes, I think it goes up tomorrow, at least early on.  I only sold about 1/3 of my CAFEW (actually sold more and bought some back on the late selloff) and sold all my CAFE since I liked CAFEW much better with the tiny premium.  I'll sell most of the rest early tomorrow and hold some longer term or buy some back for longer term on a pullback.

Tirebldr -- look at the initial post -- CAFEW is a warrant on CAFE which gives you the right to buy CAFE at 5.5.  The warrant expires July 21, 2007.