@slstock: from our discussions I gathered the following points:
1. If you are buying warrants to sell without converting, then making a flat investment (compared to the same with .N shares) will give you a big gain percentage wise IF the .N share appreciates as expected. But IF things go really south, you are completely bust compared to the .N investor who made the same initial investment.
2. If you are buying warrants hoping to convert them (i.e buying a fixed number of shares), then warrants give you a certain protection against the company going bust. Because if you buy the same number of .N shares upfront, your loss will be considerably large.
Did I get the summary right this time?