Options - long dated/low X price

[steve fleming]

Over the last few months heaps of companies have been forced into capital raisings at hugely discounted prices. As part of the raisings, to make them attractive enough, some of these companies have issued long dated options with very generous exercise prices.

These options are going to offer exceptional leverage to any share price recovery.

Over the last couple of months i have been acquiring recently issued options in companies that I consider are undervalued, satisfying the following criteria:

-Market cap under $10m
-Options with at least 2 year terms
-Exercise price of under 10c

So far i have acquired the following:
-AVBOB (X=1.5C, Apr 12, current market cap $5m)(by far my favourite - potential low cost copper producer next year)
-ESIO (X=2.0C, Jan 14, current market cap $12m)(exciting future- though progress is slow going)
-ATIO (X=0.8C, Nov 11, current market cap $10m)(this one is a bit of a roughie)

The options provide both increased exposure (more bang for your buck) and increased leverage than the heads.

I'm pretty confident that sometime in the next couple of years all these market caps will at some stage be far greater than their current levels (even if they are orchestrated pump'n'dumps). Whilst not all of these plays will come off, if handled smart enough, a portfolio of such options should deliver multi-bagger returns in the medium term.

If anyone has any other options satisfying the criteria, maybe they could mention them....thanks!

[drillfix]

-ESIO (X=2.0C, Jan 14, current market cap $12m)(exciting future- though progress is slow going)



Steve, have you been listening to SP3??? lol

I would say how about URA giving some free options ie: 8c with 2 years expiry, but I think the entitlement is just about finished. But IN ALL honesty, Management Suck and are hopeless so I wouldnt take my suggestion as advice or suggestion so be cautious.

There are quite a few companies actually, I think FXR maybe giving some free options but off hand cannot remember the exercise price or expiry.

Good luck with your search.

[shasta]

Over the last few months heaps of companies have been forced into capital raisings at hugely discounted prices. As part of the raisings, to make them attractive enough, some of these companies have issued long dated options with very generous exercise prices.

These options are going to offer exceptional leverage to any share price recovery.

Over the last couple of months i have been acquiring recently issued options in companies that I consider are undervalued, satisfying the following criteria:

-Market cap under $10m
-Options with at least 2 year terms
-Exercise price of under 10c

So far i have acquired the following:
-AVBOB (X=1.5C, Apr 12, current market cap $5m)(by far my favourite - potential low cost copper producer next year)
-ESIO (X=2.0C, Jan 14, current market cap $12m)(exciting future- though progress is slow going)
-ATIO (X=0.8C, Nov 11, current market cap $10m)(this one is a bit of a roughie)

The options provide both increased exposure (more bang for your buck) and increased leverage than the heads.

I'm pretty confident that sometime in the next couple of years all these market caps will at some stage be far greater than their current levels (even if they are orchestrated pump'n'dumps). Whilst not all of these plays will come off, if handled smart enough, a portfolio of such options should deliver multi-bagger returns in the medium term.

If anyone has any other options satisfying the criteria, maybe they could mention them....thanks!

PEN are doing a cap raising with attached 3c options...

Probably the best leverage i've seen

[steve fleming]

PEN are doing a cap raising with attached 3c options...

Probably the best leverage i've seen

Thanks Shasta - PENOA look interesting.

Drillfix - I agree, Uran at the moment offers very little upside.

[pago]

steve,blro,28/2/2011 at 4.5c exercise are currently in the money.not a liquid option stock,cheers pago,

[rae]

Options can be cheap to buy. But in the case of many companies, options are just a way to encourage people to buy shares in a fund raising exercise.
I have looked at one of the companies Steve mentioned above. In a matter of less than two years, they have had the initial IPO and then three (3) capital raisings all at less than 5Cts. and basically have no money left in the kitty. It doesn't matter how long the exercise date is, if there is no money in the kitty, it really is a gamble.
The only people making money here are the directors and other staff.
And the day traders if they are lucky.

Best Wishes and be careful.

[Crypto Crude]

welcome to the thread rae...
Steve/Shasta and others are very experienced investors and im sure they invest their portfolios accordingly to the level of risk they want to expose themselves too...

companies with low cash, with listed options give the company incentive to get the options in the money so they can raise cash.....
my biggest one day return ever was when I held options...

good thread...
thanks pago...

keep the tips that fit Steves criteria coming...
:cool:
.^sc

[steve fleming]

-ESIO (X=2.0C, Jan 14, current market cap $12m)(exciting future- though progress is slow going)


So ESIO turned out to be the first of the options in the portfolio to deliver multi-bagger returns.

Up 93% today.

Up 380% in a month.

[shasta]

So ESIO turned out to be the first of the options in the portfolio to deliver multi-bagger returns.

Up 93% today.

Up 380% in a month.

Well done SF :D

I've looked & looked at ESI for a long time, only half believing they would ever get their Coldry technology commercial...

But punting on the options, balls of steel ;)

PS, Heads were up a lazy 87% today, on 213m volume, more to come tomorrow?

[steve fleming]

Well done SF :D

I've looked & looked at ESI for a long time, only half believing they would ever get their Coldry technology commercial...

But punting on the options, balls of steel ;)

PS, Heads were up a lazy 87% today, on 213m volume, more to come tomorrow?

Cheers Shasta.

ESI's market cap is still only $25mil (compare that to WEC with $300mil)...so it should still have some legs to keep going.

That said, i think ESI is still a lot further away from successful commercialisation than most appreciate - however it's pieline of deals and news flow should help to sustain a decent re-rating.

[STRAT]

Hi Steve,
Congrads with ESI.
May I ask
What is it you like about ATI? ( ATIO )

AVB current sp 1.7c
AVBOB 0.7c sp + Ex 2c = 2.7c to expire 30/04/12
so whats the deal with
AVBO 15.0c sp + Ex 20c = 35c to expire 30/06/10

[Sehnsucht888]

So ESIO turned out to be the first of the options in the portfolio to deliver multi-bagger returns.

Up 93% today.

Up 380% in a month.

Yep, nice call. I hadn't been looking at this previously, but started to look into them after your post. Looked a good punt that I watched with sadness yesterday not being in.

But as you said - a while to go till they start to deliver. Decisions, decisions. Apart from yesterday, the volume has been pretty small though.

[Sehnsucht888]

Hi Steve,
Congrads with ESI.
May I ask
What is it you like about ATI? ( ATIO )

AVB current sp 1.7c
AVBOB 0.7c sp + Ex 2c = 2.7c to expire 30/04/12
so whats the deal with
AVBO 15.0c sp + Ex 20c = 35c to expire 30/06/10

Shasta - last trade in AVBO was July last year I think.. Current offer - 0.5c I think that has been given up on.

[steve fleming]

Hi Steve,
Congrads with ESI.
May I ask
What is it you like about ATI? ( ATIO )



Hi Strat.....Re ATI - early days, but looks like they may have a viable low cost, high grade bauxite project, next door to China. BAU has had a great run the last few months, so ATI may piggy back along.

[STRAT]

Hi Strat.....Re ATI - early days, but looks like they may have a viable low cost, high grade bauxite project, next door to China. BAU has had a great run the last few months, so ATI may piggy back along.Thanks Steve,
I bought a few when there was an increase in volume a wee while ago ( around the time a heads up was given by AA on the "make the call thread" Sold em soon after as it didnt come to anything but still on watch. Pearls to Aluminium eh? lol. Wouldnt be the first miner to make a few bucks after backing into a shell. That would be Oyster shell I suppose :D

[steve fleming]

Thanks Steve,
I bought a few when there was an increase in volume a wee while ago ( around the time a heads uo was given by AA on the "make the call thread" Sold em soon after as it didnt come to anything but still on watch. Pearls to Aluminium eh? lol. Wouldnt be the first miner to make a few bucks after backing into a shell. That would be Oyster shell I suppose :D

Aw-shucks Strat!

some background....

http://www.theaustralian.news.com.au/business/story/0,28124,24660477-18261,00.html

Chasing projects
THAT is not to say that the sector has gone totally moribund. Apparently, hope still flickers that the right project can save the day.
First we had former fish and chip shop operator Sam's Seafood Holdings (SSS) switching into Indonesian coal exploration two months ago. Now pearl player Atlantic (ATI) has decided that bauxite in Vietnam is just the thing.
Atlantic had been involved in pearl farming in Burma -- that must have seemed like a great idea at the time -- but ended up in administration. The mess was sorted out by bringing in a new board and handing over the pearl operations to the former main shareholder in return for $9 million in debt owing to him being written off, with Atlantic retaining an off-take deal for pearls.
Apart from the obvious drawbacks of trying to do anything in Burma, it has been hard to get skilled workers because no one can compete with the oil and gas explorers when it comes to wages. In addition, growing pearls requires a lot of running about in boats and diesel costs have soared. Then there is the problem that sales of pearls in Japan have plummeted.
Atlantic has been recapitalised with a new board under Perth businessman John Hannaford, who also sits around the directors' table of two juniors with US energy plays -- oil explorer Emerald Oil & Gas (EMR) and coal play Bathurst Resources (BTU).
The company is acquiring a bauxite project in Vietnam's Bao Loc region. The country has the third largest bauxite ore reserves after Guinea and Australia but has the advantage of being next door to the world's biggest market. Atlantic's strategy is that this proximity and logistical advantage will put it at the lower end of the cost curve.

[steve fleming]

Well done SF :D

I've looked & looked at ESI for a long time, only half believing they would ever get their Coldry technology commercial...

But punting on the options, balls of steel ;)

PS, Heads were up a lazy 87% today, on 213m volume, more to come tomorrow?

ESI is still going.

Heads up a further 42% today on 116 million volume.

Looks like she has a bit left in her as well.

Continue to hold ESIO.....

[steve fleming]

ESI is still going.

Heads up a further 42% today on 116 million volume.

Looks like she has a bit left in her as well.

Continue to hold ESIO.....

Heads again up another 42% yesterday on an amazing 296 million volume....up 80% at one stage.

Sold half my ESIO - it was starting to get too hot for me, and i was happy with a 700% return in just over a month.

It will probably give 10c a go next week, but i now feel more comfortable with a reduced exposure.

[STRAT]

Heads again up another 42% yesterday on an amazing 296 million volume....up 80% at one stage.

Sold half my ESIO - it was starting to get too hot for me, and i was happy with a 700% return in just over a month.

It will probably give 10c a go next week, but i now feel more comfortable with a reduced exposure.Nicely done. One more like that and you can take the rest of the year off Steve. :D

[steve fleming]

Nicely done. One more like that and you can take the rest of the year off Steve. :D

Cheers Strat. Here's hoping!!

[steve fleming]

-Market cap under $10m
-Options with at least 2 year terms
-Exercise price of under 10c



The following also meet the above criteria:

BCNOA
EKMO
OROOA
JPROA
PGCOA

[Ponda]

SF,
I'm trying to get my head around this, so please forgive me if I'm completly off track.
ORO had a spike a week or so back. Went up to about .8 or .95 cents and then has gone back to hanging around the .4-.5 cent range since.
What would be the advantage of buying the options over the heads when the latest price for the options is .2, whereas if you paid the .4 for the heads you are not restricted by the expiry date of the options.
The options expiring on the 31/07/09 will all expire out of the money.
The options expiring on the 01/12/11 can be exercised for .8 cents.
SO, if you purchased options today at .2 cents +.8 cents to excersise options = 1 cent.
So the share price needs to be over 1 cent to make a profit.
Would you be better off buying the head share at .5 cents today and then any movement from there upwards will be a profit?
Or am I completely off the planet on this one???

Discl Hold ORO

[steve fleming]

SF,
I'm trying to get my head around this, so please forgive me if I'm completly off track.
ORO had a spike a week or so back. Went up to about .8 or .95 cents and then has gone back to hanging around the .4-.5 cent range since.
What would be the advantage of buying the options over the heads when the latest price for the options is .2, whereas if you paid the .4 for the heads you are not restricted by the expiry date of the options.
The options expiring on the 31/07/09 will all expire out of the money.
The options expiring on the 01/12/11 can be exercised for .8 cents.
SO, if you purchased options today at .2 cents +.8 cents to excersise options = 1 cent.
So the share price needs to be over 1 cent to make a profit.
Would you be better off buying the head share at .5 cents today and then any movement from there upwards will be a profit?
Or am I completely off the planet on this one???

Discl Hold ORO


Ponda, you can buy twice as much OROOA as ORO for the same dollar value, and therefore get 2 x the exposure to any ORO price increase through OROOA....

basically if ORO's price increases, leverage will mean you are better off in the options rather than the heads....if it falls you are better off in the heads, than the options...or not holding at all....

[STRAT]

Discl Hold OROHi Ponda,
What attracted you to ORO?

[Ponda]

Hi STRAT,
Firstly: I am very new to trading in the market and often what I read I misinterpret!!
Secondly: I like 'penny dreadfuls' they have treated me well recently, furthermore, I like gold stocks.
Thirdly: I was attracted to the opportunities that ORO have in the Sofala Gold Project. The fact that historically over 2 million ounces of gold has been recovered from the area indicates that there is still more to come with modern mining methods. On top of that I think they have another four projects on the go.
The uptake of their SPP wasn't that great but I feel that that was more to do with where the market was in April than anything else.
Simply put. I just have a 'gut feeling' that gold stocks are the way to go and it's nice to be at the ground floor. Time wil tell if it was a wise choice.

Ponda

[STRAT]

Hi STRAT,
Firstly: I am very new to trading in the market and often what I read I misinterpret!!
Secondly: I like 'penny dreadfuls' they have treated me well recently, furthermore, I like gold stocks.
Thirdly: I was attracted to the opportunities that ORO have in the Sofala Gold Project. The fact that historically over 2 million ounces of gold has been recovered from the area indicates that there is still more to come with modern mining methods. On top of that I think they have another four projects on the go.
The uptake of their SPP wasn't that great but I feel that that was more to do with where the market was in April than anything else.
Simply put. I just have a 'gut feeling' that gold stocks are the way to go and it's nice to be at the ground floor. Time wil tell if it was a wise choice.

PondaThanks Ponda.

By the way. Dont be afraid to ask about anything. I have asked some real doozies over the years and still do. All I have had in response have been kind and helpful answers.

[Ponda]

Thanks for your encouragement, Strat.
P.S What are your thoughts of ORO

[STRAT]

Thanks for your encouragement, Strat.
P.S What are your thoughts of ORODunno, Havent looked yet. I will get back to ya.
I trade using TA so if you are looking for some FA Im not gonna be much help.

Oh, and google is great for saving face ;) :D:D:D

[steve fleming]

The following also meet the above criteria:


EKMO



EKM is an interesting undervalued explorer...good first up drill results today and it should continue to run if can maintain some volume.

900,000 Oz gold (JORC resource) and 6.2million lbs of U(JORC resource) with a market cap of $6mil and cash of $2m.

EKMO are very hard to come by, however i picked up 500,000 EKMO over the last month that no one else seemed to want.

A couple of major value drivers at play here:
- Drilling to expand gold resources to over 1mil oz,
- Potential sale of its Thatcher Soak U Resource to UNX (who own the other half of Thatcher Soak and are cashed up).

[ritchie]

Can you advise whats the cost to convert the option......have had a quick look through the news...but cant seem to find it.

Cheers.

[ritchie]

Thanks.

Question EKM and EKMO

So why the big differance between heads and options when exercise price is 0.7c

Heads are 4 cents and option 1.5.

Especially when the expeirenced ones are saying there is more leverage in options

[shasta]

Thanks.

Question EKM and EKMO

So why the big differance between heads and options when exercise price is 0.7c

Heads are 4 cents and option 1.5.

Especially when the expeirenced ones are saying there is more leverage in options

If the Heads are at a premium, it may well be due to the illiquidity of the options.

Options look bloody cheap in comparison.

What's your risk tolerance?

[ritchie]

well Ive been married twice...so pretty high I would say

[STRAT]

Thanks.

Question EKM and EKMO

So why the big differance between heads and options when exercise price is 0.7c

Heads are 4 cents and option 1.5.

Especially when the expeirenced ones are saying there is more leverage in optionsHi Ritchie,

Actually the ex price is 7c so the options are at a premium. Heads need to get to 8.5c for the options to be in the money.

[ritchie]

Strat...thanks

[steve fleming]

-AVBOB (X=1.5C, Apr 12, current market cap $5m)(by far my favourite - potential low cost copper producer next year)


AVB – biggest volume ever today by about 15 million shares.....hopefully a few more people know about it now.

Still very cheap given its near term development potential.

Looking at Cu grades comparable to SFR (ie + 20% cu – although this is oxide) but with the benefit that this resource is pretty much at surface.

AVB are targeting a 160,000t Cu resource – which is definitely substantial – though at a far lower grade than the HGZ.

Just have to wait until the 1c rights issue takers are churned through before this will really take off.

[mark100]

CMYOA - just quoted as of today. Couple of years to run. 8c exercise price vs current share price of the FPOs of 4c

[STRAT]

-AVBOB (X=1.5C, Apr 12, current market cap $5m)(by far my favourite - potential low cost copper producer next year)
!Hi Steve. I think the ex price is 2c

http://markets.smh.com.au/apps/qt/quote.ac?code=AVBOB

[steve fleming]

Hi Steve. I think the ex price is 2c

http://markets.smh.com.au/apps/qt/quote.ac?code=AVBOB

Hi Strat....smh is actually wrong...they have rounded up the ex price from 0.015 to 0.02.

from the prospectus....."The Board is pleased to offer Shareholders the opportunity to participate in a three (3) for one (1) renounceable rights issue of Shares and every two (2) Shares allotted will have one (1) free attaching Option, exercisable at 1.5 cents each on or before 30 April 2012."

[steve fleming]

CMYOA - just quoted as of today. Couple of years to run. 8c exercise price vs current share price of the FPOs of 4c

Thanks Mark. Only 12m issued so they are going to be quite hard tocome by.

[steve fleming]

The following also meet the above criteria:

BCNOA


good example of the power of options....

BCNOA up 60% today while
BCN only up 21%.

My portfolio of options is making some really good money at the moment.

[STRAT]

Hi Strat....smh is actually wrong...they have rounded up the ex price from 0.015 to 0.02.

from the prospectus....."The Board is pleased to offer Shareholders the opportunity to participate in a three (3) for one (1) renounceable rights issue of Shares and every two (2) Shares allotted will have one (1) free attaching Option, exercisable at 1.5 cents each on or before 30 April 2012."Thanks Steve. That changes the ball game considerably

[STRAT]

The following also meet the above criteria:

BCNOA
The chart for this one is showing signs of life

[steve fleming]

The chart for this one is showing signs of life

Nice article on BCN

http://www.beaconminerals.com/Reports/Media%20Articles

"We have an exploration goal of
500,000 oz and our ultimate aim is to
establish a potential resource base in the
next 12 months that could be capable of
supporting a stand alone gold project."

Am up 100% already on my BCNOA purchase...looking forward to further multi-bagger increases over the coming months.

[steve fleming]

Thanks Steve. That changes the ball game considerably

Did you get on AVB Strat?....the d/ts were all over it this morning.

Crazy...50 million traded by lunchtime.

[steve fleming]

Over the last few months heaps of companies have been forced into capital raisings at hugely discounted prices. As part of the raisings, to make them attractive enough, some of these companies have issued long dated options with very generous exercise prices.

These options are going to offer exceptional leverage to any share price recovery.

Over the last couple of months i have been acquiring recently issued options in companies that I consider are undervalued, satisfying the following criteria:

-Market cap under $10m
-Options with at least 2 year terms
-Exercise price of under 10c

So far i have acquired the following:
-AVBOB (X=1.5C, Apr 12, current market cap $5m)(by far my favourite - potential low cost copper producer next year)
-ESIO (X=2.0C, Jan 14, current market cap $12m)(exciting future- though progress is slow going)
-ATIO (X=0.8C, Nov 11, current market cap $10m)(this one is a bit of a roughie)

The options provide both increased exposure (more bang for your buck) and increased leverage than the heads.

I'm pretty confident that sometime in the next couple of years all these market caps will at some stage be far greater than their current levels (even if they are orchestrated pump'n'dumps). Whilst not all of these plays will come off, if handled smart enough, a portfolio of such options should deliver multi-bagger returns in the medium term.



This is what i love about the market – the opportunities available if you do your analysis and back yourself, and then the satisfaction when it comes off.

A couple of months ago through a unique combination of market circumstances, i thought it was a pretty much a once in a lifetime opportunity to acquire literally millions and millions of underpriced, long dated (reduced risk) options.

So i cleared my holdings of some underperforming stocks, and bought into the following options: ESIO,AVBOB, BCNOA, ATIO, EKMO,EXMOA,OROOA and added to my positions in BLRO and JPROA. It took some patience as some options took me over a month of waiting to get them.

Overall, my portfolio of options (weighted to ESIO and AVBOB) is now a multi-bagger - up approximately 275% in a couple of months....and i am expecting much much more upside over the next few months.

While i have made some decent money recently, I shudder to think how well the underwriters of some of these recent capital raisings have done.
Eg AVB – Pattersons picked up 80,000,000 AVB and AVBOB in April for 0.01 ie $800k – this holding would now be worth about $3m – although Patts i assume were involved in the blatant manipulation of AVB this morning, and probably off loaded most of these into the spike.

[pago]

This is what i love about the market – the opportunities available if you do your analysis and back yourself, and then the satisfaction when it comes off.

A couple of months ago through a unique combination of market circumstances, i thought it was a pretty much a once in a lifetime opportunity to acquire literally millions and millions of underpriced, long dated (reduced risk) options.

So i cleared my holdings of some underperforming stocks, and bought into the following options: ESIO,AVBOB, BCNOA, ATIO, EKMO,EXMOA,OROOA and added to my positions in BLRO and JPROA. It took some patience as some options took me over a month of waiting to get them.

Overall, my portfolio of options (weighted to ESIO and AVBOB) is now a multi-bagger - up approximately 275% in a couple of months....and i am expecting much much more upside over the next few months.

While i have made some decent money recently, I shudder to think how well the underwriters of some of these recent capital raisings have done.
Eg AVB – Pattersons picked up 80,000,000 AVB and AVBOB in April for 0.01 ie $800k – this holding would now be worth about $3m – although Patts i assume were involved in the blatant manipulation of AVB this morning, and probably off loaded most of these into the spike.

hi steve,like your thinking with a dose of caution.bought ctpo recently,ex 31/3/14 at 16c,so not in the money yet.but 4 years to go.sometimes a balanced portfolio needs a spice up/higher risk share.what are your better option picks worth a look,cheers pago.

[ritchie]

Hi Steve.

Thanks again for the heads up re AVBOB and BLRO which I purchased a very small holding of both.

How do you see AVBOB doing re their copper.

[STRAT]

Did you get on AVB Strat?....the d/ts were all over it this morning.

Crazy...50 million traded by lunchtime.
No Steve. Too slow:rolleyes:. I was in the buy column yesterday but couldnt nail any down. After watching the games being played with the heads and the options gapping up I decided to leave it. Will wait and see if I get another chance. Did you cash in any yesterday ?.

[JBmurc]

Glad to have brought some PENOA toady-1.6c -- 3c ex. price date- 2012 june
heads 3.4c atm would be very surprised not to see PEN well over 20c by the ex date.
will be trying to buy more sub 2c

[steve fleming]

Hi Steve.

Thanks again for the heads up re AVBOB and BLRO which I purchased a very small holding of both.

How do you see AVBOB doing re their copper.

Hi Ritchie

Whatever way you look at it, AVB has exceptional potential.

A JORC resource of 84,400t of Cu worth approx US$427 million.....a high grade zone at an average at over 11% copper (which is probably the equal, if not better average grades than Sandfire)......potential production in 2010....

Yet AVB has a market cap of approx $5m – approximately 1% of the value of its resource.

Compare AVB to RCP with a market cap of $20m – AVB’s market cap is 1/3 of RCP yet its resource is so much more attractive.

AVB would comfortably justify a market cap of $10m to $20m (3.3 cents to 6.6 cents)

As it gets closer to production, or if it’s promoters really want to let it run and the d/ts take control, then a market cap of $30m + is not unrealistic.

At a market cap of $30 mil, the heads are 10 cents and the options would be 8.5 cents – which is a 7 bagger from current prices.

Should be good news flow over the coming months to support some nice sp increases.

However, hopefully there won’t be a repeat of yesterday’s games and the sp will increase on its own merits. Problem is now there are too many buyers from yesterday who bought in on the ‘pump’ who now have to cut their losses on the ‘dump’....this won’t settle for a few days as a result.

[steve fleming]

No Steve. Too slow:rolleyes:. I was in the buy column yesterday but couldnt nail any down. After watching the games being played with the heads and the options gapping up I decided to leave it. Will wait and see if I get another chance. Did you cash in any yesterday ?.

Too early to cash in Strat!

My first target sale price for AVBOB is 0.025.

That implies heads are at 0.04 and a market cap of $12m.

Will sell some AVBOB then, sell some more at 0.05 and ride the rest!

[steve fleming]

hi steve,like your thinking with a dose of caution.bought ctpo recently,ex 31/3/14 at 16c,so not in the money yet.but 4 years to go.sometimes a balanced portfolio needs a spice up/higher risk share.what are your better option picks worth a look,cheers pago.

Hi Pago....JPROA starting to look interesting....(although only a year to go).

ex 30/6/10 @8c....currently JPR are @5c.

[shasta]

Hi Pago....JPROA starting to look interesting....(although only a year to go).

ex 30/6/10 @8c....currently JPR are @5c.

Here's another one for ya Steve ;)

TAS @ 3.5c (Market Cap ~$5.5m, roughly 160m shares)

TASOB @ 0.008 (last trade) ~20m only 10c options 30/6/12

TAS owns a chunk of EDE (~24%) & FIS (~30%) & has a boatload of greenfields projects in it's own right.

Should put out the quarterly today or tomorrow, might spark some interest

Here's the march Quarterly

http://www.stocknessmonster.com/news-item?S=TAS&E=ASX&N=444737

Gotta think there's a chance that one of there projects will realise some value somewhere along the line!

[steve fleming]

Here's another one for ya Steve ;)

TAS @ 3.5c (Market Cap ~$5.5m, roughly 160m shares)

TASOB @ 0.008 (last trade) ~20m only 10c options 30/6/12

TAS owns a chunk of EDE (~24%) & FIS (~30%) & has a boatload of greenfields projects in it's own right.

Should put out the quarterly today or tomorrow, might spark some interest

Here's the march Quarterly

http://www.stocknessmonster.com/news-item?S=TAS&E=ASX&N=444737

Gotta think there's a chance that one of there projects will realise some value somewhere along the line!

Interesting find Shasta!

This could really move when they start to drill their IO CGU Vulcan prospect, (only 30km from Olympic Dam).

Plus investments in EDE and FIS limits downside.

Only problem is, TASOB listed on 30 June and so far only 23,700 have traded. Have to be very patient if wanting to accumulate a meaningful position!

[mark100]

MAK have a SPP coming up which will offer free options, MAKO. Exercise price around 70c with at least a year or more to run from memory. MAK can be volatile so MAKO could offer some excitement

[shasta]

Interesting find Shasta!

This could really move when they start to drill their IO CGU Vulcan prospect, (only 30km from Olympic Dam).

Plus investments in EDE and FIS limits downside.

Only problem is, TASOB listed on 30 June and so far only 23,700 have traded. Have to be very patient if wanting to accumulate a meaningful position!

Yeah that's the downside...

I put in the heads for you, as they are fairly illiquid & offer almost the same kind of leverage that some of the other options do.

Perhaps the heads are the better play (yes, i know the thread is about options)

[steve fleming]

The chart for this one is showing signs of life

BCN now trading at 2c... however 1c BCNOA are trading at 0.008.

Very nice discount to the heads (which are looking very strong at the moment).

[steve fleming]

SMN / SMNO (x 1.5c) are now in the money.

SMNO was on my watch list but not enough volume to enter.

However, it is now up 900% in 2 days, from 0.001 to 0.01.

Although on tiny volume, holders of SMNO (issued in November) will have had a nice paper return.

[steve fleming]

Here's another one for ya Steve ;)

TAS @ 3.5c (Market Cap ~$5.5m, roughly 160m shares)

TASOB @ 0.008 (last trade) ~20m only 10c options 30/6/12

TAS owns a chunk of EDE (~24%) & FIS (~30%) & has a boatload of greenfields projects in it's own right.

Should put out the quarterly today or tomorrow, might spark some interest

Here's the march Quarterly

http://www.stocknessmonster.com/news-item?S=TAS&E=ASX&N=444737

Gotta think there's a chance that one of there projects will realise some value somewhere along the line!

Break out today Shasta - up 40%.

Options haven't moved yet, but they will big time soon....however no liquidity yet to enter.

[steve fleming]

free options!!

MSR - 1 for 2 options to be issued to holders on 31 August.

"The Directors have resolved that the Company will issue a free option to all Shareholders registered on the Company’s share register as at close of business on 31 August 2009. One option will be issued for every 2 Shares held on that date. Each option is to acquire one Share at an exercise price of $0.20 and with an expiry date of 30 September 2011"

[KentBrockman]

Hi Steve, inspired by your initial posting in this thread, I have done a little exercise and merged a file containing all ASX codes that have options issued along with their head share prices, option prices, volumes etc. with a file containing expiry dates and exercise prices. I then calculated Black-Scholes (Volatility was simplified as one constant value as I didn't have time series available for every single stock) and other statistics for all the options that exist (ca. 300), and then created a ratio of Black-Scholes vs real price, and created a ranking based on the outcome. Eliminating everything with less than a year to run leaves about 160 observations.

The result is some interesting list of all ASX option's inherent value starting from 0.01 (extremely overvalued, based on option and share price, in this case CLDO) to 98.8 (extremely undervalued, here RRLOA). Needless to say that there is some sort of issue with the extremes on this list (mostly that the last trade was ages ago at some odd value), but looking at the more reasonable values between say 1.5 times undervalued to 10 times undervalued yields some interesting insights.

After doing some additional checks (mostly in regard to the funding situation of individual companies) I have made a couple of moves :), but as you pointed out, the problem usually is obtaining a reasonable amount of options, as the buy/sell spread is often huge, particularly with the very small players.

BTW, one thing that stood out on the list was Beach, with options much cheaper than they (theoretically) should be. With Beach being one of the few large companies that have options issued I wonder why this is the case?




Over the last few months heaps of companies have been forced into capital raisings at hugely discounted prices. As part of the raisings, to make them attractive enough, some of these companies have issued long dated options with very generous exercise prices.

These options are going to offer exceptional leverage to any share price recovery.

Over the last couple of months i have been acquiring recently issued options in companies that I consider are undervalued, satisfying the following criteria:

-Market cap under $10m
-Options with at least 2 year terms
-Exercise price of under 10c

So far i have acquired the following:
-AVBOB (X=1.5C, Apr 12, current market cap $5m)(by far my favourite - potential low cost copper producer next year)
-ESIO (X=2.0C, Jan 14, current market cap $12m)(exciting future- though progress is slow going)
-ATIO (X=0.8C, Nov 11, current market cap $10m)(this one is a bit of a roughie)

The options provide both increased exposure (more bang for your buck) and increased leverage than the heads.

I'm pretty confident that sometime in the next couple of years all these market caps will at some stage be far greater than their current levels (even if they are orchestrated pump'n'dumps). Whilst not all of these plays will come off, if handled smart enough, a portfolio of such options should deliver multi-bagger returns in the medium term.

If anyone has any other options satisfying the criteria, maybe they could mention them....thanks!

[shasta]

Hi Steve, inspired by your initial posting in this thread, I have done a little exercise and merged a file containing all ASX codes that have options issued along with their head share prices, option prices, volumes etc. with a file containing expiry dates and exercise prices. I then calculated Black-Scholes (Volatility was simplified as one constant value as I didn't have time series available for every single stock) and other statistics for all the options that exist (ca. 300), and then created a ratio of Black-Scholes vs real price, and created a ranking based on the outcome. Eliminating everything with less than a year to run leaves about 160 observations.

The result is some interesting list of all ASX option's inherent value starting from 0.01 (extremely overvalued, based on option and share price, in this case CLDO) to 98.8 (extremely undervalued, here RLLOA). Needless to say that there is some sort of issue with the extremes on this list (mostly that the last trade was ages ago at some odd value), but looking at the more reasonable values between say 1.5 times undervalued to 10 times undervalued yields some interesting insights.

After doing some additional checks (mostly in regard to the funding situation of individual companies) I have made a couple of moves :), but as you pointed out, the problem usually is obtaining a reasonable amount of options, as the buy/sell spread is often huge, particularly with the very small players.

BTW, one thing that stood out on the list was Beach, with options much cheaper than they (theoretically) should be. With Beach being one of the few large companies that have options issued I wonder why this is the case?

Kent

The Beach options have a $2 strike price, does that explain it?

[shasta]

Break out today Shasta - up 40%.

Options haven't moved yet, but they will big time soon....however no liquidity yet to enter.

TAS currently 8c

TASOB currently 4.5c

God i feel sick :(

[STRAT]

TAS currently 8c

TASOB currently 4.5c

God i feel sick :(I tried to get some of the options yesterday but the sell column was all but empty :rolleyes:

[KentBrockman]

Kent

The Beach options have a $2 strike price, does that explain it?

Shasta, no it doesn't. The Black Scholes model relates OP, SP, time to expiry, exercise price, prevailing interest rate and dividend payments (if any).

So the exercise price is already worked in.

[steve fleming]

Hi Steve, inspired by your initial posting in this thread, I have done a little exercise and merged a file containing all ASX codes that have options issued along with their head share prices, option prices, volumes etc. with a file containing expiry dates and exercise prices. I then calculated Black-Scholes (Volatility was simplified as one constant value as I didn't have time series available for every single stock) and other statistics for all the options that exist (ca. 300), and then created a ratio of Black-Scholes vs real price, and created a ranking based on the outcome. Eliminating everything with less than a year to run leaves about 160 observations.

The result is some interesting list of all ASX option's inherent value starting from 0.01 (extremely overvalued, based on option and share price, in this case CLDO) to 98.8 (extremely undervalued, here RRLOA). Needless to say that there is some sort of issue with the extremes on this list (mostly that the last trade was ages ago at some odd value), but looking at the more reasonable values between say 1.5 times undervalued to 10 times undervalued yields some interesting insights.

After doing some additional checks (mostly in regard to the funding situation of individual companies) I have made a couple of moves :), but as you pointed out, the problem usually is obtaining a reasonable amount of options, as the buy/sell spread is often huge, particularly with the very small players.

BTW, one thing that stood out on the list was Beach, with options much cheaper than they (theoretically) should be. With Beach being one of the few large companies that have options issued I wonder why this is the case?

Hi Kent,

interesting stuff....so you have undertaken approximately 300 Black-Scholes valuations, of all options listed on the ASX??? Thats quite an effort!

You state 'Volatility was simplified as one constant value' - would be interested to know what volatility assumption you adopted, given volatility is a key driver of any Black-Scholes pricing.

For volatility, i would be thinking maybe 80% to 100% for specs but a lot lower, say 40% to 60% for mid/larger caps.....therefore maybe you are overstating BPT's volatility and thus their 'theoretical' value which you calculate?

[KentBrockman]

Hi Kent,

interesting stuff....so you have undertaken approximately 300 Black-Scholes valuations, of all options listed on the ASX??? Thats quite an effort!


I wrote a SAS programme that does all the work for me :)





For volatility, i would be thinking maybe 80% to 100% for specs but a lot lower, say 40% to 60% for mid/larger caps.....therefore maybe you are overstating BPT's volatility and thus their 'theoretical' value which you calculate?

I used 100% across the board which I reckon is about right for most small miners, due to the turmoil in the last year. And yes, I am aware that this may overstate Beach's inherent option value (which came out about 5 times the current option price). I then recalculated BPT manually, and it still seems undervalued by a factor of about 3.

[drillfix]

TAS currently 8c

TASOB currently 4.5c

God i feel sick :(


Hey Shasta, dont worry mate, many of us too can left feeling gutted. And especially when I a particular mate over here raving when they were 3.x cents and telling me to get on board.

Just another WTF or Ahh well or Sheez another train sets off, of course without having a ticket and as we all know, we cant have tickets for them all can we. :p

[foodee]

TAS currently 8c

TASOB currently 4.5c

God i feel sick :(

Shas
I see the 'bear' has appear!

Re-TAS & whatever else; I use to punish myself
playing the "should have, or would have game".
Now I console myself that it is part of life and keep
moving forward.

cheers

[Thumpa]

Interesting thread.

I made a watch list for all the options mentioned so far and backdated to the beginning of the thread (or when they first traded for the more recent ones) . Some do have quite good liquidity , and some don't.
Overall ..... plenty of oportunities to kick yourself over the last 8 weeks.

http://i167.photobucket.com/albums/u150/soundzgoodgood/asxoptions.png

[drillfix]

Cheers Thumpa, good post with nice little comparison chart, thanks.

[STRAT]

Looks like ATI may be on the move Steve :D broke out of the trading range today

[steve fleming]

Looks like ATI may be on the move Steve :D broke out of the trading range today

Yep...nice break on reasonable volume today....and i think BCN/BCNOA won't be far behind it either....Should be some news re drilling tomorrow which may provide impetus for it to break the 1.7 / 1.9 range.

ATIO is currently at a nice discount @0.6c (heads at 1.5c, X is 0.08c) so when ATI moves ATIO will move extra quickly.

Am quite excited to see what eventuates over the next week or so.

[STRAT]

Yep...nice break on reasonable volume today....and i think BCN/BCNOA won't be far behind it either....Should be some news re drilling tomorrow which may provide impetus for it to break the 1.7 / 1.9 range.

ATIO is currently at a nice discount @0.6c (heads at 1.5c, X is 0.08c) so when ATI moves ATIO will move extra quickly.

Am quite excited to see what eventuates over the next week or so.Yeah Steve I had a crack at ATIO and AVBOB a while back after you started this thread but only managed to secure a few of these (ATIO). Nice to see them up with it being a bit of a roughy and all :D
I decided against BCNOA because they expire next year

[KentBrockman]

If anyone has any other options satisfying the criteria, maybe they could mention them....thanks!

Here are a few that seem undervalued and have a reasonable long run till expiry. I don't really see the point about Steve's criterion of a low exercise price.

GRVO 30 31-Dec-11 GREENVALE MINING 2.9
ARDO 20 30-Jun-11 ARGENT MINERALS LIMITED 2.9
MDSOB 10 28-May-11 MIDAS RESOURCES LIMITED 3.0
PEXO 20 30-Nov-10 PEEL EXPLORATION LIMITED 3.1
MNCO 25 4-Dec-12 METMINCO LIMITED 3.3
ATQO 25 31-Aug-11 ATOMIC RESOURCES LIMITED 4.2

The last figure indicates the 'undervaluedness' of the options in relation to the head shares,

The problem is, as with all options issued by these tiddlers, to obtain a meaningful number of options. BTW, does anyone know how to not get stuck with 300 options at 0.1c?
Overseas I have seen brokers that have an 'all or nothing' option, but does anyone offer this in NZ?

[STRAT]

These options move fast eh Steve? My ATIO was a bag and a halfer for about 20 min while I was away working today :rolleyes:

[steve fleming]

These options move fast eh Steve? My ATIO was a bag and a halfer for about 20 min while I was away working today :rolleyes:

Yeah...fast up and fast down!!:)....at least it held 1.7 (3rd day in a row it has closed at 1.7) as the profit takers sold in the afternoon....amazing volume....i find that big break outs often occur on lighter volume a few days after a big volume day (is there a technical term for that??) so hopefully we’ll see ATI close at above 2.0 in the next few days.

BAU will go mad tomorrow when it re-opens so ATI will hopefully follow that sentiment ... i am thinking people who have missed the BAU story may be moving into ATI to ride what is hopefully the next Bauxite play.

Will start selling my ATIO when the market cap hits $20m (heads are at 2.5).

[STRAT]

Yeah...fast up and fast down!!:)....at least it held 1.7 (3rd day in a row it has closed at 1.7) as the profit takers sold in the afternoon....amazing volume....i find that big break outs often occur on lighter volume a few days after a big volume day (is there a technical term for that??) so hopefully we’ll see ATI close at above 2.0 in the next few days.

.I think the break out from 1.3 was during those higher volume days rather than after but there sure is a solid ceiling to break through at 1.7

[STRAT]

I see someone converted a bunch of ATIO. A tad on the early side eh?:eek:
Some one taking advantage of the options lagging behind the heads perhaps?
Reckon they will be up for sale quick smart:rolleyes:

[STRAT]

I see someone converted a bunch of ATIO. A tad on the early side eh?:eek:
Some one taking advantage of the options lagging behind the heads perhaps?
Reckon they will be up for sale quick smart:rolleyes:Another 11 mil today.
What do you think about this Steve?

[steve fleming]

Another 11 mil today.
What do you think about this Steve?

Looks like someone taking advantage of what has been pretty much a consistent 0.002c discount on the options v heads over the past week .....and making a $22k profit

Its good news for ATI as they get an additional $100k in their coffers thepast week.

What do you reckon about this price incerase Strat??...i thought it was gonna be another pump and dump, but this rise seems to have some substance, no gaps and steady accumulation.

You must be up 200% now on your ATIO??

[STRAT]

Looks like someone taking advantage of what has been pretty much a consistent 0.002c discount on the options v heads over the past week .....and making a $22k profit

Its good news for ATI as they get an additional $100k in their coffers thepast week.

What do you reckon about this price incerase Strat??...i thought it was gonna be another pump and dump, but this rise seems to have some substance, no gaps and steady accumulation.

You must be up 200% now on your ATIO??That was my take on it too.

The day job has been keeping me too busy to keep a close eye on things Steve but have noticed there has been a bit of volume for quite a few days. I will look at the chart tonight.

and yup a bagger+ so far :D Of course that could be gone by the time I get back in this arvo :rolleyes:

[JBmurc]

Just brought some VWMOA @ 6c ex price 20c 24/02/12 current SP 18.5c

CFE just loaned VWM 2mill in convertible notes 30c ex sp 12% yeild 2yr term
Tony n the boys must think VWM moly exploration results will lift the S/P lot higher than 30c within 2yrs

[steve fleming]

Yep...nice break on reasonable volume today....and i think BCN/BCNOA won't be far behind it either....Should be some news re drilling tomorrow which may provide impetus for it to break the 1.7 / 1.9 range.



Finally a breakout with BCN today, after 2 weeks of trading between 1.7 and 1.9.

BCNOA up 45%.


Also Strat, looks like ATIO have peaked for the time being.....can't sustain a 200% increase in a couple of weeks without any news.

[STRAT]

Finally a breakout with BCN today, after 2 weeks of trading between 1.7 and 1.9.

BCNOA up 45%.


Also Strat, looks like ATIO have peaked for the time being.....can't sustain a 200% increase in a couple of weeks without any news.Hi Steve,
Yup. went to work with a sell order in ( best guess ) I was 0.1 too optimistic so I still own em :rolleyes: Wasnt surprised to see the dump when I got home yesterday but should have been a little less greedy and I would have been out for the time being at a bag and a half. The perils of part time trading eh? :D

[STRAT]

Was expecting ATIO to be back below a cent this arvo. What a pleasant surprise. Showing considerable strength and on a friday too :D:D:D

Could be a good finish. These penny dreadfuls sure are fun

[steve fleming]

SMN / SMNO (x 1.5c) are now in the money.

SMNO was on my watch list but not enough volume to enter.

However, it is now up 900% in 2 days, from 0.001 to 0.01.

Although on tiny volume, holders of SMNO (issued in November) will have had a nice paper return.

Insiders were getting in early a couple of weeks ago.

Buried away in a note in SMN's 4e today was details of what could prove to be a company maker for SMN:

"The Company has completed negotiations with a major international company in the aerospace sector to enter into a partnership to develop and commercialise the Company’s CVM™ technology. The associated agreement documentation is being finalised, and is expected to be available for signature by both parties shortly. With the signing of such an agreement, the Company will receive cash payments which will enable the Company to continue its’ operations. The Company intends to make a detailed statement regarding this partnership once the agreement has been executed."

Potentially could move very quickly once news is out. Hold SMNO.

[Thumpa]

Two more to consider :

RAUO 3c exercise expiring June 2010 (0.8c at present)
RAUOA 4c exercise expiring June 2011 (0.9c at present)

[STRAT]

ATIO closed @ 1.7 today Steve as Im sure you already know. Im just amazed at how this has held up. That news coming better be bloody good. Not sure if I want to be around to find out really.

[steve fleming]

ATIO closed @ 1.7 today Steve as Im sure you already know. Im just amazed at how this has held up. That news coming better be bloody good. Not sure if I want to be around to find out really.

Yep....pretty sure this is gonna be a 'buy the rumour, sell the fact play'!

Sold half my ATIO, took my 200% profit,and am free carrying the balance....
Same with my BCNOA.

When you start seeing threads on HC titled like 'massive day tomorrow be early' you know its time to have your finger pretty close to the sell.

Also, i know ATI are currently organising a pretty big capital raise - don't know the specifics though.

[steve fleming]

Two more to consider :

RAUO 3c exercise expiring June 2010 (0.8c at present)
RAUOA 4c exercise expiring June 2011 (0.9c at present)

Cheers Thumpa. There is a fair bit of liquidity in both of these as well.

Interesting that the 4c options are currently trading higher than the 3c options.

Though i see market cap has recently doubled, so upside is a lot lower now than it was a couple of weeks ago.

[steve fleming]

Global Health Limited (GLH) - ex WSS

At 3c the Market cap = $7mil.

GLHO (XP of 1.7c, expire 31/12/10) currently trading at 0.6c which is a 0.7c discount to their implied price.

[snowball]

New option

RXLOA 1.5c ex and 31/7/11 expiry & current trading 1.0c which is 0.5c above RXL sp of 2.0c. RXL mkt cap $4m.

RXL & RXLOA both up 11% today

[steve fleming]

Here are a few that seem undervalued and have a reasonable long run till expiry. .


MDSOB 10 28-May-11 MIDAS RESOURCES LIMITED 3.0



Still lots of good sized gains to be made through options.

ie MDSOB up a nice 150% today (on little volume though).

[steve fleming]

EKM is an interesting undervalued explorer...good first up drill results today and it should continue to run if can maintain some volume.

EKMO are very hard to come by, however i picked up 500,000 EKMO over the last month that no one else seemed to want.



Happy days!

EKMO today became the fifth of my options to increase 100% over the past 3 to 4 months:

ESIO (0.01 to 0.043 = 330%)
AVBOB (0.005 to 0.01 = 100%)
ATIO (0.005 to 0.02 = 300%)
BCNOA (0.005 to 0.014 = 180%)
EKMO (0.012 to 0.034 = 180%)

[JBmurc]

Anyone get told off for not walking their opts if the spreads wide load of bollacks if you ask me E*trade even put my account on hold because of it LOL


Dear mr murc

I have spoken to your wife regarding an order you placed in VWMOA which moved the price by 25% and she asked me to send you an email.

You came up on our compliance reports for buying options in VWM (Victory West Moly Limited) which resulted in a 25% price movement. In future you will need to walk your order up at different price levels over the course of at least an hour. For example start at 4.2 cents then amend it to 4.4 cents after 10 minutes then again slowly amend it up towards the ask price which was 5 cents. Trading in this way does not constitute keeping a fair and orderly market which can be deemed as market manipulation and is a breach of ASX Market rules.

I have attached a notice from our website regarding unacceptable Market Practices, so please read and understand these guidelines.

If you have any further queries please contact us on 1300 303 678 or email us at etrade_options@etrade.com.au

Kind Regards

[STRAT]

Anyone get told off for not walking their opts if the spreads wide load of bollacks if you ask me E*trade even put my account on hold because of it LOL


Dear mr murc

I have spoken to your wife regarding an order you placed in VWMOA which moved the price by 25% and she asked me to send you an email.

You came up on our compliance reports for buying options in VWM (Victory West Moly Limited) which resulted in a 25% price movement. In future you will need to walk your order up at different price levels over the course of at least an hour. For example start at 4.2 cents then amend it to 4.4 cents after 10 minutes then again slowly amend it up towards the ask price which was 5 cents. Trading in this way does not constitute keeping a fair and orderly market which can be deemed as market manipulation and is a breach of ASX Market rules.

I have attached a notice from our website regarding unacceptable Market Practices, so please read and understand these guidelines.

If you have any further queries please contact us on 1300 303 678 or email us at etrade_options@etrade.com.au

Kind RegardsLOL JB that is too funny.

The ASX is as consistant as Auckland weather so it probably wont be a problem if you do it tomorrow :rolleyes:

I have low ball offers on all sorts of things so I hope it doesnt work the other way :eek:

[JBmurc]

LOL JB that is too funny.

The ASX is as consistant as Auckland weather so it probably wont be a problem if you do it tomorrow :rolleyes:

I have low ball offers on all sorts of things so I hope it doesnt work the other way :eek:

My reply to the e-mail-

what a load of bollocks VWMOA are long dated options I paid 6c ea only days before hand did the seller who sold at 4c not manipulate the price down I paid 5c as thats where the seller was at, if I fuffed round waiting every 10 mins moving .2 of cent I may have missed out at 5c they are now at 6c again with the offers now at 6.5c

They replyed

Mr Murc

These are the requirements of the Australian Stock Exchange, you have no option but to walk your orders up going forward.

Your account has been disabled, please call +61 3 8541 0458 and ask to speak to the DTR Department to discuss these matters and have your account reactivated.

Regards
David

[STRAT]

DTR department eh?
Im not too sharp when it comes to acronyms but Im guessing that might be something like "recently Dug up Turnip Resource"

[CAM]

what a joke...DTR...sounds more like D*cks , Tossers and Retards

[JBmurc]

what a joke...DTR...sounds more like D*cks , Tossers and Retards

yeah I gave the Damm Trader retart a good blast on the phone on putting my account in the sinbin

[drillfix]

New option

RXLOA 1.5c ex and 31/7/11 expiry & current trading 1.0c which is 0.5c above RXL sp of 2.0c. RXL mkt cap $4m.



Snowball, double check the Appendix 3B mate, as the RXLOA is 10c ex

Just thought I would clarify.

This one looks set to get ready to rumble, not many shares on issue either.

Looks like a little Zinc play actually

[snowball]

Hi Drilly, they got the latest App 3B wrong. I noticed that the other day and scratched my head a little.

The previous 3B announced on 10/7/09 has all the details - this updates for the recent rights issue of a 1:1 at 1.5c plus 1:10 bonus Jul11 options with 1.5c ex (i.e. RXLOA).

There were 38m RXLOA 1.5c Jul11 opts issued as the rights issue was fully u/written.

There are also 30m Jun11 opts on issue with a 10c ex with ASX code RXLO.

The heads went nuts today. Suspect an announcement brewing but now cashed up from the rights issue and, as you say, ready to rumble.

I am surprised it has been ignored as see great upside. Suspect an overhang from no cash and common sp stalling due to the rights issue.

I don't know where else for a $4m mkt cap (before today) you can get a zinc project with $2.5bn in-ground value at 7% Zn+Pb with 5% cut-off and $4.5bn in-ground at 5.2% Zn+Pb with 3% cut-off. This all now looks very cheap and expect a significant re-rating must be due. I think management needs a shake-up but the project looks good.

Hence I put RXL in SC's Sept comp ahead my 2nd pick of ICN which I was regretting...

[drillfix]

Thanks for that Snowball, was a little bamboozled by all that.

And yep this will also look cheap another 4 months .

[snowball]

AA - yes.
RXLOA - 1.5c ex Jul11.
RXLO - 10c ex Jun11.
Prefer RXLOA.

[ritchie]

RXLOA) ROX RESOURCES LIMITED
OPTION EXPIRING 31-JUL-2011 DEFERRED
15 Sep 2009 15:24 Delayed | Live Quote
Last Price +/- % Open High Volume
$0.0140 $0.0020 16.7% 0.0130 0.0150 806,166
Bid Ask # Bid # Ask Low Value
0.0140 0.0150 N/A N/A 0.0130 11,827

















Closing Price Val Price Val Date Val Basis Div Currency
0.0120 0.0100 15 Sep 2009 Last AUD
Ex Price Exp Date
0.02 31 Jul 2011



Exercise price 2 cents...isnt it for rxloa

[snowball]

nope, 1.5 cents exercise price for RXLOA.

i think i recall previous discussion on this thread indicating some websites truncate exercise price information to 2 decimals - as seems the case with A-A's link to trading room (0.015 displayed as 0.02).

be careful with websites that show option exercise prices with only 2 decimals

Rox Resources made 3 ASX announcements on 10/7/09 which clearly state the new options are issued with a 1.5 cents ex price - check them out if unsure

[STRAT]

nope, 1.5 cents exercise price for RXLOA.

i think i recall previous discussion on this thread indicating some websites truncate exercise price information to 2 decimals - as seems the case with A-A's link to trading room (0.015 displayed as 0.02).

be careful with websites that show option exercise prices with only 2 decimals

Rox Resources made 3 ASX announcements on 10/7/09 which clearly state the new options are issued with a 1.5 cents ex price - check them out if unsureDead right Snowball and I have struck this on 3 sites. As painful as it is, best to go back through announcements I reckon

[pago]

hi well fxro now on the radar,up 100% today to 4c.ex 30/11/2010 at 30c.i never trusted the management so ? cheers pago

[COLIN]

Check out INEO. Up over 30% today. I got some in the recent rts issue, and bought a few more today. (Exercise price 40c). This is an excellent route for us Antipodean investors to gain from the burgeoning India growth story.
Some say that India and Australia will be the two countries that show the strongest growth rates over the coming years. They could well be right. I am gradually switching more of my portfolio from NZ to Aust, and intend to slowly - but modestly - increase my exposure to Asia.

[STRAT]

Yep....pretty sure this is gonna be a 'buy the rumour, sell the fact play'!

Sold half my ATIO, took my 200% profit,and am free carrying the balance....
Same with my BCNOA.

When you start seeing threads on HC titled like 'massive day tomorrow be early' you know its time to have your finger pretty close to the sell.

Also, i know ATI are currently organising a pretty big capital raise - don't know the specifics though.Hey Steve,
Check this out

http://i36.tinypic.com/b6vsp2.jpg

[STRAT]

Hey Steve,
Check this out

http://i36.tinypic.com/b6vsp2.jpgWell its back on and going up but................

He gets 99 million shares. Now if thats a new issue which I assume it is thats nearly 1/3 the shares on issue inc ATIAK ???

He better be good at his job eh? and will he still be around in 12 months?

[steve fleming]

Well its back on and going up but................

He gets 99 million shares. Now if thats a new issue which I assume it is thats nearly 1/3 the shares on issue inc ATIAK ???

He better be good at his job eh? and will he still be around in 12 months?

Think there is 1.3b shares on issue Strat.

Strange career move - from FMG to a dodgy bauxite explorer!

Am free-carrying my ATIO so will just sit back and enjoy the ride!

[shasta]

Here's another one for ya Steve ;)

TAS @ 3.5c (Market Cap ~$5.5m, roughly 160m shares)

TASOB @ 0.008 (last trade) ~20m only 10c options 30/6/12

TAS owns a chunk of EDE (~24%) & FIS (~30%) & has a boatload of greenfields projects in it's own right.

Should put out the quarterly today or tomorrow, might spark some interest

Here's the march Quarterly

http://www.stocknessmonster.com/news-item?S=TAS&E=ASX&N=444737

Gotta think there's a chance that one of there projects will realise some value somewhere along the line!

TAS now 0.12c +342% :cool:
TASOB now 0.073 +912% :eek:

Didn't back myself :o

[drillfix]

Didn't back myself :o


LOL Shasta, aint that the way of the world at times hey.

Mentally/paper trade out way to Millions only to get it zapped away when having actually entered into a position :rolleyes: :D

[shasta]

LOL Shasta, aint that the way of the world at times hey.

Mentally/paper trade out way to Millions only to get it zapped away when having actually entered into a position :rolleyes: :D

I backed EDE in the monthly ASX comp, so i should have known TAS would increase with EDE (i knew there announcements were due this month).

Funnily enough EDE options expired in September, & TAS has continued to run based on upcoming drill results of it's own.

TAS held EDE options as well as heads

[STRAT]

Hi STRAT,
Firstly: I am very new to trading in the market and often what I read I misinterpret!!
Secondly: I like 'penny dreadfuls' they have treated me well recently, furthermore, I like gold stocks.
Thirdly: I was attracted to the opportunities that ORO have in the Sofala Gold Project. The fact that historically over 2 million ounces of gold has been recovered from the area indicates that there is still more to come with modern mining methods. On top of that I think they have another four projects on the go.
The uptake of their SPP wasn't that great but I feel that that was more to do with where the market was in April than anything else.
Simply put. I just have a 'gut feeling' that gold stocks are the way to go and it's nice to be at the ground floor. Time wil tell if it was a wise choice.

PondaHi Ponda.
Bought a few OROOA today :eek:
Have been trying to get some @ 0.1 pretty much since this thread was started by Steve ( Thanks Steve )
Coughed up 0.2c for em today.

[Ponda]

Hi Ponda.
Bought a few OROOA today :eek:
Have been trying to get some @ 0.1 pretty much since this thread was started by Steve ( Thanks Steve )
Coughed up 0.2c for em today.

Very wise move, young man.
There has been alot of action of late for ORO. The last 3 or 4 days have seen some good volume.

[STRAT]

Very wise move, young man.
There has been alot of action of late for ORO. The last 3 or 4 days have seen some good volume.Thats very kind of you to say ( the young part :D )

Up 50% already lol.

Have been watching em for months. Soon as the volume started to increase I thought best to cough up the extra. Thing is though, short of going into administration it would be fair to say there would be good support at 0.1c :p

Now there is a good chance I could lose 50% in the blink of an eye :eek: but depth and chart for the heads lookin pretty good right now.

[Ponda]

Strat,
I'm pretty sure that we are waiting for some mining results that should have been out at the end of August. They are for the Club Terrace area. I haven't seen the results yet.
Maybe the rise in volume is in preparation for those results.

[steve fleming]

Nice gains from Ashburton Minerals today.

ATNOA up 400% today on 17 mil volume.

[COLIN]

Nice gains from Ashburton Minerals today.

ATNOA up 400% today on 17 mil volume.

And no announcements - or ASX enquiry! So much for "an informed market".

[Corporate]

And no announcements - or ASX enquiry! So much for "an informed market".

check out ATN's friday annoucement..the market had a chance to digest it over the weekend.

Not to mention a tonne of ramping on hotcopper

[Thumpa]

JPROA @ 1.5 cents on run-up to drilling :)

Another one to research is ROGOA ( currently 2.1 cents)
300,000,000 on issue . Expire 2nd september 2011 Exercise = 2 cents
The heads (ROG) currently at 4 cents.

[drillfix]

Dont know if this is much use to folks here but, here are some tables which time is around 11:40am+.

By Gains:
http://i34.tinypic.com/21mw669.gif

By Volume:
http://i33.tinypic.com/286r0ae.gif

By Falls:
http://i35.tinypic.com/2lca53r.gif

Lots of options in amongst them gains, losses etc etc

Cheers Thumpa, I noticed JPROA amongst the gainers.

[COLIN]

Steve, why haven't you alerted us to MEICA?!! (Not options, of course, but contributing shares with 20c still to pay). Up 450% today! Meteoric indeed.

But, before anyone gets too excited, they appear to be as scarce as hens' teeth - only $95 worth changed hands today, and there are no more sellers.

[steve fleming]

Steve, why haven't you alerted us to MEICA?!! (Not options, of course, but contributing shares with 20c still to pay). Up 450% today! Meteoric indeed.

But, before anyone gets too excited, they appear to be as scarce as hens' teeth - only $95 worth changed hands today, and there are no more sellers.

Nice spotting Colin!

4 trades in the last 12 months,so not the most liquid of stocks!

Not many partly paids left on the ASX these days, but SXXCA is one that i like, but is also very iliquid.

[evilroyrule]

Nice spotting Colin!

4 trades in the last 12 months,so not the most liquid of stocks!

Not many partly paids left on the ASX these days, but SXXCA is one that i like, but is also very iliquid.

steve, ive been trying to channel your powers to pick something looking to pop. if you can spare the time CFE seems to be building quite quickly on the buy side. i do hold these so may not be impartial in trying to answer. many thanks

[STRAT]

Strat,
I'm pretty sure that we are waiting for some mining results that should have been out at the end of August. They are for the Club Terrace area. I haven't seen the results yet.
Maybe the rise in volume is in preparation for those results.Hey Ponda looks like someone finally coughed up 0.4c today

Its a bagger lol :rolleyes:

[skeet]

JPROA had another good day today, up 35%.

[steve fleming]

steve, ive been trying to channel your powers to pick something looking to pop. if you can spare the time CFE seems to be building quite quickly on the buy side. i do hold these so may not be impartial in trying to answer. many thanks

Hi Roy,

Am not really into short term trading, but CFE has a market cap of $250m!!...so a nice solid, well run, company to invest in, but probably not the best for a short term trade, i would have thought.

it may well break out, re/rate and and should give you some solid capital returns, if resources hold up, potentially give you a 100% return over the next few months....but not my cup of tea.

Personally, I prefer more upside, investing in a sub $5m/$10m market caps provides far more chance of doubling/ quadrupling/ becoming a multibagger than buying into a large mature company like CFE.

I take a medium term investment horizon and ask myself, is it realistic that the company i am about to invest in could realistically become a multibagger in the next 12 months??

It was easier a few months ago and the likes of EKM, BCN, AVB, ATI, JPR, ORO, ESI have all tripled plus...i bought into each of these when they were sub $10m market caps, and in many cases options have exponentially increased the returns.

I.e. if CFE was to triple it would have a market cap of $1billion – can you see that happening in the medium term???

But comes down to what you are after and, like all investing, the risk versus reward trade off.

Good luck!

[evilroyrule]

thanks steve, appreciate you taking the time to reply. you make good points and even better ones i can understand!! this place is great given people with experience sharing their thoughts and ideas. most helpful. thanks again

[steve fleming]

No dramas Roy, all the best.

[Ponda]

Hey Ponda looks like someone finally coughed up 0.4c today

Its a bagger lol :rolleyes:

Hey, STRAT
Been a bit of action with volume on the heads as well.
I'm sure that we are still waiting those results. I emailed the company last week about if the results have been released and they haven't replied to me yet.

P.S. Good investment BTW

[evilroyrule]

No dramas Roy, all the best.

hey steve, how funny! first thirty mins of trading cfe up by 7%. but no doubt the asx will do its usual pixies ala nirvana thing, high (morning), low (afternoon), who knows (end).

[snowball]

Steve, this is a great thread. Looking back, TEXOB (Target Energy) hasn't surfaced yet!!!

TEXOB listed about 9/10/09 - App3B lodged that day shows 7.4m opts dated 3yrs (31/10/12) and 10c ex (current SP 5.7c).

Current trading at 1.5c - see below trading details to 21/10 (the early birds certainly caught the worms):
TEXOB,"14 Oct 2009",.005,.005,.005,.005,168000
TEXOB,"15 Oct 2009",.01,.01,.01,.01,49000
TEXOB,"20 Oct 2009",.012,.012,.012,.012,100000
TEXOB,"21 Oct 2009",.015,.015,.015,.015,497000

There will be a lot more on issue shortly following closing of the TEX rights issue on Monday 19/10 where 1:1 opts attaching to shares.

TEX probably trading around the bottom of trading range currently due to the shackles of a cap raising. Might soon get some more air.

Cheers.

[JBmurc]

Hi Roy,

Am not really into short term trading, but CFE has a market cap of $250m!!...so a nice solid, well run, company to invest in, but probably not the best for a short term trade, i would have thought.

it may well break out, re/rate and and should give you some solid capital returns, if resources hold up, potentially give you a 100% return over the next few months....but not my cup of tea.

Personally, I prefer more upside, investing in a sub $5m/$10m market caps provides far more chance of doubling/ quadrupling/ becoming a multibagger than buying into a large mature company like CFE.

I take a medium term investment horizon and ask myself, is it realistic that the company i am about to invest in could realistically become a multibagger in the next 12 months??

It was easier a few months ago and the likes of EKM, BCN, AVB, ATI, JPR, ORO, ESI have all tripled plus...i bought into each of these when they were sub $10m market caps, and in many cases options have exponentially increased the returns.

I.e. if CFE was to triple it would have a market cap of $1billion – can you see that happening in the medium term???

But comes down to what you are after and, like all investing, the risk versus reward trade off.

Good luck!

I could see CFE with a market cap of a billion but thats longer term short term 80%+ growth to get too a current fair value- if resources rocket or Tony sells 1 of the 23+ good assets for top dollar 120%+ more likely
an more than likely 10%+ yeild yearly off 50c

Getting back on topic I wish someone would sell me some VWMOA opts

[JBmurc]

thanks to the VWMOA seller these are going make me a mint

go the mightly southland

[COLIN]

Another one to research is ROGOA ( currently 2.1 cents)
300,000,000 on issue . Expire 2nd september 2011 Exercise = 2 cents
The heads (ROG) currently at 4 cents.

On my "wanted list" but it ran away from me before I could catch it. I don't feel inclined to run after it but others seem to have different ideas judging by its steady and relentless climb today.

[steve fleming]

Steve, this is a great thread. Looking back, TEXOB (Target Energy) hasn't surfaced yet!!!

TEXOB listed about 9/10/09 - App3B lodged that day shows 7.4m opts dated 3yrs (31/10/12) and 10c ex (current SP 5.7c).

Current trading at 1.5c - see below trading details to 21/10 (the early birds certainly caught the worms):
TEXOB,"14 Oct 2009",.005,.005,.005,.005,168000
TEXOB,"15 Oct 2009",.01,.01,.01,.01,49000
TEXOB,"20 Oct 2009",.012,.012,.012,.012,100000
TEXOB,"21 Oct 2009",.015,.015,.015,.015,497000

There will be a lot more on issue shortly following closing of the TEX rights issue on Monday 19/10 where 1:1 opts attaching to shares.

TEX probably trading around the bottom of trading range currently due to the shackles of a cap raising. Might soon get some more air.

Cheers.

Hi snowball,yep, great time to get in during the middle of a cap raising. There is the selling pressure from the raising, plus its pior to the inevitable good news announcement when they detail how they are going to spend the cash.

Cheers for TEXOB, i'll add it to the watchlist.

[Thumpa]

On my "wanted list" but it ran away from me before I could catch it. I don't feel inclined to run after it but others seem to have different ideas judging by its steady and relentless climb today.

Volitile day for ROGOA . All over the show. May catch a few with a cheeky low ball bid as traders exit.

[scorp57]

If things continue the way they are , I would confidently recommend URAOA

3c... long dated, not many out there... fpo's starting to rocket

[STRAT]

Thanks for this thread Steve.
I have done very well from your tips.
ATIO ( sold too early )but nice all the same.
Still holding AVBOB which has been blooming lately and OROOA

[shasta]

Hi snowball,yep, great time to get in during the middle of a cap raising. There is the selling pressure from the raising, plus its pior to the inevitable good news announcement when they detail how they are going to spend the cash.

Cheers for TEXOB, i'll add it to the watchlist.

Steve

Another option for you to look at is, AXMO

It's current market cap size @ $25m* will be too big for your criteria, but the options have a strike price of just $0.06 in Nov 2012

* They recently raised $109m to repay senior debt, new shares not yet issued. (Refer link for more details)

http://www.stocknessmonster.com/news-item?S=AXM&E=ASX&N=461413

Fairly long run in for a Gold producer with a current SP of $0.042.

[steve fleming]

Steve

Another option for you to look at is, AXMO

It's current market cap size @ $25m* will be too big for your criteria, but the options have a strike price of just $0.06 in Nov 2012

* They recently raised $109m to repay senior debt, new shares not yet issued. (Refer link for more details)

http://www.stocknessmonster.com/news-item?S=AXM&E=ASX&N=461413

Fairly long run in for a Gold producer with a current SP of $0.042.

Yep, good call Shasta.

Interesting play - in 12 months AXM will either be insolvent, or have a m/c in the hundreds of millions, in which case AXMO will be a multi-bagger many times over.

Depends if you back Management to turn around the operational issues and get production ramped up sufficiently...at the moment sentiment is awful, and Management have proved to be failures...but the cap raising is backed by Pattersons and Azure Capital, and going forward on a debt free basis will help.

Certainly very very high up on the risk/reward scale....AXMO commence trading on 11 November so i'll look more into it before then.

Cheers

[COLIN]

I don't think OBJO has been raised on this thread - not recently, anyway. Options up 60% today. Exercisable Dec 2010 at 1c. I know nothing about their "patches" but clearly some people think that there is a bit of a goldmine here.

[scorp57]

URAOA up 40% today

[steve fleming]

URAOA up 40% today

This is what Kris Sayce of ASI wrote a few weeks back in his “small cap investigator” report:

“Now that there's the 'mirage' of an economic recovery, investors that have sat on the sidelines are piling into stocks they know - the banks, BHP, Woolworths, etc. When that happens, the small caps tend to get shoved aside.

But that won't last for long. After blue chip stocks have climbed 30%, investors will become less convinced they can move much further.

That's when the focus returns to small caps. And that's the next phase I'm expecting shortly. ”

That phase i reckon has officially begun.....small caps/specs are going off at the moment, and options are the best way to take advantage.

You just don’t want to be holding them when the market turns!!!

[scorp57]

Good Point Steve...

Small Caps seem harder to value than the large caps, so when the markets are bad they get sold down to nothing, and when the markets are good they get bought up to ridiculous levels...

I think that having a 2013 expiry date and 8c ex price, URAOA (4.5c today) is a great example of this...

I am going to try learn about AXMO too as I am looking at things to possibly shift into after Uran pops (which it will IMO)

I have VPEO on the watchlist too

[shasta]

Good Point Steve...

Small Caps seem harder to value than the large caps, so when the markets are bad they get sold down to nothing, and when the markets are good they get bought up to ridiculous levels...

I think that having a 2013 expiry date and 8c ex price, URAOA (4.5c today) is a great example of this...

I am going to try learn about AXMO too as I am looking at things to possibly shift into after Uran pops (which it will IMO)

I have VPEO on the watchlist too

I'll repost about EFEO (from stocks under cash holding/NTA thread)

EFEO strike price 12c expires 19/12/10

Current SP of Heads $0.089, options are ~$0.03 at the moment

Only 26m FPO's too, & cash @ $3m exceeds market cap $2.3m :eek:

EFE is an Iron Ore junior

[Ponda]

As previously mentioned OROOA could be one to watch. There has been a bit of volume lately and I'm sure that we are waiting for some assey results. I have emailed the company twice and have not yet had a reply.
The price has flucuated between 4-5 cents for a while. It then has been going through a trading range of between 6-7 cents and has now settled at 6 cents.

OROOA Expiry Dec 2011. Current price 3 cents. Exercise Price 8 Cents.
ORO Current price 6 cents.


DYOR

DISC hold ORO

[steve fleming]

Steve

Another option for you to look at is, AXMO

It's current market cap size @ $25m* will be too big for your criteria, but the options have a strike price of just $0.06 in Nov 2012

* They recently raised $109m to repay senior debt, new shares not yet issued. (Refer link for more details)

http://www.stocknessmonster.com/news-item?S=AXM&E=ASX&N=461413

Fairly long run in for a Gold producer with a current SP of $0.042.

http://stocknessmonster.com/news-item?S=AXM&E=ASX&N=468105

Only a 53% take up of the entitlement issue.

Which means that 47% of the options to be issued are going to be in the hands of the underwriters...

....underwriters who are likely to want to get rid of their free options reasonably quickly.

therefore, could be some good opportunities to pick up cheap options after listing.

[steve fleming]

http://stocknessmonster.com/news-item?S=AXM&E=ASX&N=468105

Only a 53% take up of the entitlement issue.

Which means that 47% of the options to be issued are going to be in the hands of the underwriters...

....underwriters who are likely to want to get rid of their free options reasonably quickly.

therefore, could be some good opportunities to pick up cheap options after listing.

AXMO start trading tomorrow.

Will see how it opens but will probably put in a bid around 1.5c.

[Sehnsucht888]

AXMO start trading tomorrow.

Will see how it opens but will probably put in a bid around 1.5c.

Trading started on the 6th... last trade at 2c, down from 2.3c the day before.

[steve fleming]

Trading started on the 6th... last trade at 2c, down from 2.3c the day before.

Yes,there have been a couple of trades on a deferred basis since Monday.

However, per the 3b "The anticipated date for commencement of trading of the New Shares and New Options is Thursday 12 November 2009."

Today is when the real action starts.

[Sehnsucht888]

Yes,there have been a couple of trades on a deferred basis since Monday.

However, per the 3b "The anticipated date for commencement of trading of the New Shares and New Options is Thursday 12 November 2009."

Today is when the real action starts.

Guess so. Saw the number of listed shares jump from 600 million to 3.3 billion or there abouts this morning... Seems quite a few.....

[STRAT]

Today is when the real action starts.Sure has :eek:

[Thumpa]

Gee..... sure is fun watching those 10,000,000 dumps..... oooahh , there goes a 76m cross trade.

[steve fleming]

Steve

Another option for you to look at is, AXMO

It's current market cap size @ $25m* will be too big for your criteria, but the options have a strike price of just $0.06 in Nov 2012

* They recently raised $109m to repay senior debt, new shares not yet issued. (Refer link for more details)

http://www.stocknessmonster.com/news-item?S=AXM&E=ASX&N=461413

Fairly long run in for a Gold producer with a current SP of $0.042.

Bought into AXMO today.

Chinese are also buying up big.

Downside you would think, is limited.

[Sehnsucht888]

Bought into AXMO today.

Chinese are also buying up big.

Downside you would think, is limited.

I've taken a punt on this one too.
Some of the those mentioned in this thread have done nicely.
Thanks to all for their input..

AXM is beyond what this thread was targeted at though - 10mill market caps.. So is this being opened up for all options? Eg CTPO 31-Mar-2014 currently 9c.

[STRAT]

AVB broke out again today. AVBOB is turning out to be an excellent trade for me. Thanks again Steve :D

[steve fleming]

AXM is beyond what this thread was targeted at though - 10mill market caps.. So is this being opened up for all options? Eg CTPO 31-Mar-2014 currently 9c.

There are not too many sub 10m m/caps with listed options left now.... feel free to add other small/micro caps with options!

[steve fleming]

AVB broke out again today. AVBOB is turning out to be an excellent trade for me. Thanks again Steve :D

No dramas Strat...good to hear its been a winner for you too!

[steve fleming]

No dramas Strat...good to hear its been a winner for you too!

Well its a loser today!

Over reaction as normal IMO. AVB is about the copper, not nickel.

[evilroyrule]

on the plus side steve avmo looking the goods today

[STRAT]

Well its a loser today!

Over reaction as normal IMO. AVB is about the copper, not nickel.lol
Must have been something I said :eek:

[Lion]

Steve - I don't think anyone has mentioned Target Energy (TEX on ASX) have they? Options are TEXOB.
Market cap $8,651,910 today, exercise price 10c on 31 Oct 2012.
The sp has jumped up the last few days, but many think they have a lot more to run. They have quite a few interests in onshore oil and gas in the US.
Check it out - I have a few heads and more options.

Edit . . . Oops, I see these have been mentioned already.

[steve fleming]

Steve - I don't think anyone has mentioned Target Energy (TEX on ASX) have they? Options are TEXOB.
Market cap $8,651,910 today, exercise price 10c on 31 Oct 2012.
The sp has jumped up the last few days, but many think they have a lot more to run. They have quite a few interests in onshore oil and gas in the US.
Check it out - I have a few heads and more options.

Edit . . . Oops, I see these have been mentioned already.

Cheers Lion, sneaks under $10m m/cap!....and yep,Snowball mentioned them a week or two back:)

[pigeon]

anyone have GOAOA on their radar??????



5c - the price of a coming gold producer

* Robin Bromby
* From: The Australian
* November 12, 2009 3:31PM

AS this is being written, shares in Gold Anomaly were trading up 1.5c at 4.7c, although they did hit 5.5c earlier.

Excuse me? Here is a company that this morning reported it has ordered an integrated gravity gold processing plant for its San Chico prospect in Brazil. It will be over there and in working order ready for the first gold production in four months’ time. So here we have a company on the brink of gold production and its stock has trouble breaking through the 5c mark!

Remember, this is no longer the cash strapped Gold Aura before its merger with Anomaly Resources (and changed its name), the latter an equally obscure company that had been floated on the small stock exchange in Newcastle.

Pure Speculation flagged the merger months ahead of its happening and pointed out the pedigree of the main mover behind Anomaly.

By May this new combined outfit will be producing - if all goes well - at the rate of 20,000oz a year in Brazil at a cash cost of $340/oz. Which leaves a very comfortable margin. And will, as intended, generate cash flow for other projects, although the two biggies will probably attract deep-pocketed farm-in partners.

One of those projects is the potentially enormous Crater Mountain gold project in Papua New Guinea that Anomaly brought to the table. The other is the also potentially huge Croydon zinc-tin-copper-silver discovery in far north Queensland.

That’s a lot of bangs for your buck - or, in this case, for your 5c.

But it is just one more sign that it is a hard battle to get investor interest in gold stocks.

[pigeon]

Expiry Date 30 June 2012 @ 3c.... looking pretty tasty.

[Sehnsucht888]

Looks interesting Pigeon..

But trading halt this morning. Although a company that can't read a calendar is a bit concerning....

[pigeon]

lol yes, "Friday 19 November"... does make you wonder

[snowball]

Steve, hopefully not talking too far out of school. Royal Resources (uranium & IO) has a mkt cap of about $39m - greater than the $10m ceiling set for this thread but thought ROYO worthy of mention.

ROYO - expiry 10/11 with 10 cents ex. ROY trading at 18 cents and with ROYO at 11 cents. Possibly marginally overpriced and poss should be trading approx 10 cents.

But ... there is a secondary opt. If exercised early in a special May 2010 window there is a free additional option granted with a 10/13 expiry and 12 cents ex price.

Therefore 4 cents out of the money now but if ex in May 2010 can get an opt that is 6 cents in the money with a 10/13 expiry.

Sounds a reasonable deal. I am unsophisticated in the pricing of options, but am I missing something here?

[steve fleming]

Steve, hopefully not talking too far out of school. Royal Resources (uranium & IO) has a mkt cap of about $39m - greater than the $10m ceiling set for this thread but thought ROYO worthy of mention.

ROYO - expiry 10/11 with 10 cents ex. ROY trading at 18 cents and with ROYO at 11 cents. Possibly marginally overpriced and poss should be trading approx 10 cents.

But ... there is a secondary opt. If exercised early in a special May 2010 window there is a free additional option granted with a 10/13 expiry and 12 cents ex price.

Therefore 4 cents out of the money now but if ex in May 2010 can get an opt that is 6 cents in the money with a 10/13 expiry.

Sounds a reasonable deal. I am unsophisticated in the pricing of options, but am I missing something here?

Interesting find Snowball - a piggyback option.

Ignoring time value and volatility, you are paying 11 cents + 10 cents (X1) + 12 cents (X2) = 33 cents to aquire 2 ROY @ 18 cents = 36 cents.

So looks pretty good. The piggyback option gives you another chance to get the benefits of option leverage to any ROY share price increase. So ROYO essentially provide double the leverage of a traditional option.

[snowball]

ROYO jumped to 15 cents (+36%) and ROY to 24.5 cents.

Something afoot perhaps.

[Ponda]

Hi Ponda.
Bought a few OROOA today :eek:
Have been trying to get some @ 0.1 pretty much since this thread was started by Steve ( Thanks Steve )
Coughed up 0.2c for em today.



STRAT, Are you still holding?
They have just come out with a JV/Farmout announcement this morning.

I still hold the Head Shares.

[STRAT]

STRAT, Are you still holding?
They have just come out with a JV/Farmout announcement this morning.

I still hold the Head Shares.Sold half @ 0.3 so my average is 0.1c Figured they couldnt go much lower than that :rolleyes: but never say never eh?

By the way Ponda where are our assey results

[Ponda]

By the way Ponda where are our assey results

I know!!!

Have you done any digging around? I'm not sure if I was correct in my comment. But after lookin an lookin an lookin I'm sure that we are still waiting.

[STRAT]

I know!!!

Have you done any digging around? .Not really :o.

This company is pretty much a shell looking for something to back into the garage so I guess the ann today is a good start but market seems suitably unimpressed:(

[steve fleming]

BRDOA - not long dated, however look very interesting nonetheless.

- X price = 3 cents
- Expire 30/11/10
- Currently at 0.3 cents

BRD currently at 1.4 cents = market cap of $5m

therefore:

- BRDOA will be in the money if BRD double (3 cents) to a market cap of $10m.
- BRDOA will be a 10 bagger if BRD reach a not particuarly demanding market cap of $20m (ie BRD = 6 cents therefore BRDOA =3cents plus - which is a ten bagger from 0.3 cents).

In relation to BRD (Black Ridge Mining)

- BRD are currently drilling a 22.5 km magnetite anomaly that they share with QNL in WA.
- High grade results to date include: 117m at 34.56% Fe, 0.66% V2O5 and 9.56% TiO2
- Agreement with Chinese coal producer.
- Also potential coal project in Indonesia.
- So upside from its current $5mil m/c, esp given the spec market is running hot.


This strategy of taking leveraged positions in undervalued micro-caps worked spectacuarly for me in 2009 - EKMO, ATIO, ESIO all were at least 5 baggers for me from the price i first bought to when i took profits and free-carried my position. Also numerous other of my options resulted in multi-baggers. I have also accumulated significant positions in other options that should generate multi-bagger returns in 2010.

Not for everyone - but it has worked out very well for me.

[Corporate]

BRDOA - not long dated, however look very interesting nonetheless.

- X price = 3 cents
- Expire 30/11/10
- Currently at 0.3 cents

BRD currently at 1.4 cents = market cap of $5m

therefore:

- BRDOA will be in the money if BRD double (3 cents) to a market cap of $10m.
- BRDOA will be a 10 bagger if BRD reach a not particuarly demanding market cap of $20m (ie BRD = 6 cents therefore BRDOA =3cents plus - which is a ten bagger from 0.3 cents).

In relation to BRD (Black Ridge Mining)

- BRD are currently drilling a 22.5 km magnetite anomaly that they share with QNL in WA.
- High grade results to date include: 117m at 34.56% Fe, 0.66% V2O5 and 9.56% TiO2
- Agreement with Chinese coal producer.
- Also potential coal project in Indonesia.
- So upside from its current $5mil m/c, esp given the spec market is running hot.




Steve BRD seem to be faily low on cash ($522k at 30 September). Do you know how they are funding this current drilling?

[Aotea]

Hi,
Could you tell me how I can buy options?
Im with Direct Broking and I cant find BRDOA to buy into..
cheers

[percy]

aotea
go to www.stocknessmonster.com
enter code and get quotes charts news
i use their watch list
did you receive the syft article?

[Aotea]

aotea
go to www.stocknessmonster.com
enter code and get quotes charts news
i use their watch list
did you receive the syft article?

Hi Percy,
Yes I did , many thanks!!
It doesnt make me feel any better for holding SYFT though...

Cheers, I will take a look at that site. I assume, I could then ask the Direct Broking staff to buy them.
Take it easy

[steve fleming]

Steve BRD seem to be faily low on cash ($522k at 30 September). Do you know how they are funding this current drilling?

The current drilling was only 2 holes, so that would be funded from their existing cash. But yeah, it looks as though they will need to have a capital raise to fund the follow up RC drilling and metallurgical testwork.

Maybe a placement to their Chinese partner Donghui Group?

[trackers]

Steve BRD seem to be faily low on cash ($522k at 30 September). Do you know how they are funding this current drilling?

Hi Corporate,

I'm looking at this one too... A cap raising on 23Dec would have increased cash by $300,000 (less whatever they've spent in the last 1/4).

Dunno if I'm gutsy enough to have a go at the options, its really relying on some unknown good things happening before the end of the year (as opposed to a rerate)

[steve fleming]

This strategy of taking leveraged positions in undervalued micro-caps worked spectacuarly for me in 2009 - EKMO, ATIO, ESIO all were at least 5 baggers for me from the price i first bought to when i took profits and free-carried my position. Also numerous other of my options resulted in multi-baggers. I have also accumulated significant positions in other options that should generate multi-bagger returns in 2010.



Some of the options mentioned on this thread ( and also BRDOA above) are relatively illiquid. However, this should not prevent the accumulation of decent positions, providing you are patient.

As an example PGCOA - there were only about 5 million PGCOA traded in the whole of 2009.
However i managed to acquire 2 million of the 5 mil traded in 6 parcels at levels between 0.006 and 0.009, without bidding the price up once.
I find that if you have a buy order waiting in the queue, there are eventually people who lose patience and sell into it.

EKMO was another stock which took me about 5 trades and 3 months to build my position.

As the price increases and the stock attracts more attention, liquidity will inevitably increase and will provide opportunities to sell into if you wish to take profits.

As an example EKMO -liquidiy went from about 1mil a month to about 10 mil in a week when the traders were all over EKM.

If you are a short term trader, or are in a position where you will be forced to sell your position quickly, then this strategy obviously does not work.

[trackers]

Some of the options mentioned on this thread ( and also BRDOA above) are relatively illiquid. However, this should not prevent the accumulation of decent positions, providing you are patient.

As an example PGCOA - there were only about 5 million PGCOA traded in the whole of 2009.
However i managed to acquire 2 million of the 5 mil traded in 6 parcels at levels between 0.006 and 0.009, without bidding the price up once.
I find that if you have a buy order waiting in the queue, there are eventually people who lose patience and sell into it.

EKMO was another stock which took me about 5 trades and 3 months to build my position.

As the price increases and the stock attracts more attention, liquidity will inevitably increase and will provide opportunities to sell into if you wish to take profits.

As an example EKMO -liquidiy went from about 1mil a month to about 10 mil in a week when the traders were all over EKM.

If you are a short term trader, or are in a position where you will be forced to sell your position quickly, then this strategy obviously does not work.

Hey steve,

Really enjoy your posts, you are clearly good at what you do... If you dont mind me asking, do you have a scanner or something to identify possible option plays?

I notice the sell side is very very thin for BRDOA, as you say... I also work by sticking in buy orders and waiting for them to get snapped up by impatient sellers

[steve fleming]

Hey steve,

Really enjoy your posts, you are clearly good at what you do... If you dont mind me asking, do you have a scanner or something to identify possible option plays?

I notice the sell side is very very thin for BRDOA, as you say... I also work by sticking in buy orders and waiting for them to get snapped up by impatient sellers


Hi Trackers

the link below will give you the code/X date/X price of approximately 350 ASX listed options.

http://www.afrsmartinvestor.com.au/tools/tables/OptionsExercise.xls

I also use Bloomerg to search for/monitor companies with market caps of less than $10m, and combine with FA to determine micro cap plays. If a micro cap then has options available that is a bonus.

cheers

[trackers]

Hi Trackers

the link below will give you the code/X date/X price of approximately 350 ASX listed options.

http://www.afrsmartinvestor.com.au/tools/tables/OptionsExercise.xls

I also use Bloomerg to search for/monitor companies with market caps of less than $10m, and combine with FA to determine micro cap plays. If a micro cap then has options available that is a bonus.

cheers

http://www.afrsmartinvestor.com.au/tables.aspx is a goldmine!

Thanks again Steve, legend

[Aotea]

Hi,
You guys sound like you are onto a good thing. The ESI options would have been nice to get into, but I dont understand how the options play really works, so I bought ordinary ESI.

Can one of you legends please explain how the options buzz works. I understand that you buy say 100,000 options and at the expiry you get the choice to pay up and by the ordinary stock at the set price. Black Ridge sounds interesting and Im keen to get into them, and the options you discuss sound even more lucrative potentially. If I was going to throw a couple of K into black ridge, and choose to buy options instead can you please describe how it all goes down. cheers

[steve fleming]

Hi,
You guys sound like you are onto a good thing. The ESI options would have been nice to get into, but I dont understand how the options play really works, so I bought ordinary ESI.

Can one of you legends please explain how the options buzz works. I understand that you buy say 100,000 options and at the expiry you get the choice to pay up and by the ordinary stock at the set price. Black Ridge sounds interesting and Im keen to get into them, and the options you discuss sound even more lucrative potentially. If I was going to throw a couple of K into black ridge, and choose to buy options instead can you please describe how it all goes down. cheers

Hi Aotea,

You are correct in that at expiry of the options you have the choice to pay the exercise price and get an ordinary share. However with tradeable options like BRDOA you can trade them on the ASX like any other ASX share up to expiry. The last person holding the options prior to expiry must decide whether they want to exercise them (although any holder can exercise them prior to expiry if they wish).

The benefits are, that for the same $ value of investment you can buy a lot more options than shares - BRDOA is trading at 1/5 of BRD, therefore (assuming stock is available) you can buy 5 times the number of BRD for the same $ value of investment - therefore you get more bang for your buck and more exposure to any share price movements of the head share.

Also, the dynamics of the current stock price and exercise price generally provides much more potential upside for the option price versus the share price - ie if BRD goes from 1.5c to 6c, BRDOA will go from 0.3c to 3c - 4c. - As per my previous post "BRDOA will be a 10 bagger if BRD reach a not particuarly demanding market cap of $20m (ie BRD = 6 cents therefore BRDOA =3cents plus - which is a ten bagger from 0.3 cents)" -

The disadvantages of options include:
1) illiquidity (ie for example, not much BRDOA on offer)
2) miss out on dividends
3) no access to SPP/ rights issues and therefore potential dilution. For this reason, for all my major option holdings, i also have a minimum holding ($500) in the ordinary shares, so i will have access to any SPP entitlements provided to shareholders.

[Aotea]

Hi Steve,
Thanks for that info...very much appreciated.
Aotea

[percy]

steve
thank you.i finally got some pgc today at 2.6 cents.
been trying or get either pgcoa at o.8 or pgc at 2.6
options moved up today yet heads came down.

[STRAT]

AVB having a good morning fellas :D

Anyone know why?

[steve fleming]

AVB having a good morning fellas :D

Anyone know why?

Hey Strat,

there is this guy on H/C - HGZone (think he is also Hooter on T/S) - he has the most amazingly informative postings on AVB.

Either he has inside connections or he is completly making it up - but he seems quite onto it.

[STRAT]

Hey Strat,

there is this guy on H/C - HGZone (think he is also Hooter on T/S) - he has the most amazingly informative postings on AVB.

Either he has inside connections or he is completly making it up - but he seems quite onto it.Hi Steve, so its a bit of ramping on HC getting us along this morning eh? :D
Not complaining mind you. I will check out the goss over there. Thanks for the heads up and Happy New Year to you.

[STRAT]

http://www.afrsmartinvestor.com.au/tables.aspx is a goldmine!

Thanks again Steve, legendSure is.

Thanks Steve from me too

[steve fleming]

Sure is.

Thanks Steve from me too

No dramas Strat... all the best to you for 2010!

[STRAT]

AVB
7 blue days in a row and added volume over the last 4 of them.

Build up to yesterdays ann or building for another run?? Who knows but lookin good

[pigeon]

Check out the depth for GOAOA.... something brewing?


Buyers
2,575,424

Sellers
21,645

[percy]

Steve
were you the buyer,or the seller of PGCOA today.?
Better volume.

[soltrader]

Hi Aotea,

You are correct in that at expiry of the options you have the choice to pay the exercise price and get an ordinary share. However with tradeable options like BRDOA you can trade them on the ASX like any other ASX share up to expiry. The last person holding the options prior to expiry must decide whether they want to exercise them (although any holder can exercise them prior to expiry if they wish).

The benefits are, that for the same $ value of investment you can buy a lot more options than shares - BRDOA is trading at 1/5 of BRD, therefore (assuming stock is available) you can buy 5 times the number of BRD for the same $ value of investment - therefore you get more bang for your buck and more exposure to any share price movements of the head share.

Also, the dynamics of the current stock price and exercise price generally provides much more potential upside for the option price versus the share price - ie if BRD goes from 1.5c to 6c, BRDOA will go from 0.3c to 3c - 4c. - As per my previous post "BRDOA will be a 10 bagger if BRD reach a not particuarly demanding market cap of $20m (ie BRD = 6 cents therefore BRDOA =3cents plus - which is a ten bagger from 0.3 cents)" -

The disadvantages of options include:
1) illiquidity (ie for example, not much BRDOA on offer)
2) miss out on dividends
3) no access to SPP/ rights issues and therefore potential dilution. For this reason, for all my major option holdings, i also have a minimum holding ($500) in the ordinary shares, so i will have access to any SPP entitlements provided to shareholders.


Steve, I understand you're in Sydney. So, for others out there:
How does one get access to the option market from NZ? The broker I use (ASB) only gives me access to shares. I own some options (via SPP) and they're a long way from conversion time. But wanted to actually buy a few on the market (only as a way to learn this thing).

[steve fleming]

Steve
were you the buyer,or the seller of PGCOA today.?
Better volume.

Yep, biggest day ever by volume for PGCOA - usually a sign that somethings up, and no I was'nt trading any PGCOA today!

The good thing with PGC is that the 500K buyer @ 2.9 remains there, with no sellers willing to sell into the order.

[steve fleming]

Steve, I understand you're in Sydney. So, for others out there:
How does one get access to the option market from NZ? The broker I use (ASB) only gives me access to shares. I own some options (via SPP) and they're a long way from conversion time. But wanted to actually buy a few on the market (only as a way to learn this thing).

Hi Soltrader,

I use ASB sometimes, and have no problems.
Listed options are just like buying a normal share, but use, for example, AVBOB as the code instead of AVB.

[Aotea]

Hi All,
Is anyone holding ESI options, and do they know much about what the option specs are?
cheers

[percy]

Hi All,
Is anyone holding ESI options, and do they know much about what the option specs are?
cheers

ESIO were trading today at 2.5 cents with conversion 16/1/2014 when 2cents is payable to convert to a share.very long dated option.
ESI ordinary shares were today tradind at 3.8cents.
so the real value in the options is the long lenght of time until conversion.
Donot tell any one but i have had a tiny parcel of esi shares for about 15years.lovely annual reports with trade names like supersludge and hydrocracker.
when latest change of direction came along I thought no way am i putting good money after bad money.
shows how a change can mean new oppurtiunaties.

[soltrader]

Hi Soltrader,

I use ASB sometimes, and have no problems.
Listed options are just like buying a normal share, but use, for example, AVBOB as the code instead of AVB.


I had no idea! Thanks Steve.

[Aotea]

ESIO were trading today at 2.5 cents with conversion 16/1/2014 when 2cents is payable to convert to a share.very long dated option.
ESI ordinary shares were today tradind at 3.8cents.
so the real value in the options is the long lenght of time until conversion.
Donot tell any one but i have had a tiny parcel of esi shares for about 15years.lovely annual reports with trade names like supersludge and hydrocracker.
when latest change of direction came along I thought no way am i putting good money after bad money.
shows how a change can mean new oppurtiunaties.

Thanks Percy,
I too hold some of the head share, and I like their future....will look into ESIO.
Cheers

[snowball]

BIT has $13m mkt cap so a tad above the $10m limit for this thread but here we go.

Biotron opts commence trade today code BITO. Have just been allocated to accounts overnight from 1:1 cap raising where issued at 2c each with 30/12/11 expiry and 10c ex.

These are 'piggy back' options (like ROYO). If ex at 10c by 30/3/10 (yes, short but shares currently bid at 12c) then get a free extra option with 30/3/12 expiry and 20c ex.

Must be worth upwards of 4c. Picked some up in cap raising. Interesting, as piggy back options are generally underpriced by the mkt - like ROYO where hold a heap and iron ore rather than biotech.

[percy]

Yep, biggest day ever by volume for PGCOA - usually a sign that somethings up, and no I was'nt trading any PGCOA today!

The good thing with PGC is that the 500K buyer @ 2.9 remains there, with no sellers willing to sell into the order.

well done again steve PGC at 3.3cents today on good volume.

[steve fleming]

BIT has $13m mkt cap so a tad above the $10m limit for this thread but here we go.

Biotron opts commence trade today code BITO. Have just been allocated to accounts overnight from 1:1 cap raising where issued at 2c each with 30/12/11 expiry and 10c ex.

These are 'piggy back' options (like ROYO). If ex at 10c by 30/3/10 (yes, short but shares currently bid at 12c) then get a free extra option with 30/3/12 expiry and 20c ex.

Must be worth upwards of 4c. Picked some up in cap raising. Interesting, as piggy back options are generally underpriced by the mkt - like ROYO where hold a heap and iron ore rather than biotech.

Looks like a smart way for BIT to get some additional funding in March, Snowball,

So I take it you will be exercising your BITO before March to get the piggyback?

[snowball]

Looks like a smart way for BIT to get some additional funding in March, Snowball,

So I take it you will be exercising your BITO before March to get the piggyback?

Steve,

I am no options expert. More a med-long term investor. I am purely in this as a hedge fund play on a cap raising.

However, other than just bringing this to attention, you never know where these bio stocks are going to get to, and, hell, I have no idea about them, unless the stock price gets to something more favourable than 12 -13 cents I can't see why I should exercise. I would just leave them as is. The difference is only 3 months for a 10c price difference.

I think the exercise is too clever and that it will backfire on them. But, just like resource stocks, these bio guys hold back on the announcements to release them at critical times - I suspect.

What do you think???

[Corporate]

I'd say it's time to get very careful with option. It looks like the markets are turning and option value disappears extremely quickly.

take care.

[Aotea]

Just bought a good parcel of ESIO, so now I wait to see whether it will pay off!!

[percy]

Just bought a good parcel of ESIO, so now I wait to see whether it will pay off!!

Aotea.I am sure you will have fun,as they are really long,expiring 16 Jan 2014,.when they convert to shares on payment of 2cents per option.
Time is certainly on your side.The market will certainly flutuate between now and conversion date.At todays price of 1.5 cents you have plenty of leveredge.

[percy]

Just bought a good parcel of ESIO, so now I wait to see whether it will pay off!!
Well done Aotea the market mover,buyer 1.7 today,so good buying already.

[Aotea]

Thanks Percy..I got my ESIO at 1.5c and personally I reckon thats a bargin.

Does anyone hold or have an opinion on oroya options (OROOA)?

[STRAT]

Thanks Percy..I got my ESIO at 1.5c and personally I reckon thats a bargin.

Does anyone hold or have an opinion on oroya options (OROOA)?Hi Aotea,
I dumped most of my stocks when the market trend changed but held a few and this is one of em.
Bought OROOA at 0.2c and sold half a while back at 0.3.

Current holding average cost based on the above 0.1c. Figured they wouldnt drop below that no matter what the Market does. :D
'
The company is a few sheets of paper in a cardboard box on a shelf in a Solicitors office as far as I can see. Any kind of deal backed into this shell will give us a re-rating I reckon. When? Who knows. Holding is relatively small.

[Aotea]

Hi Strat,
Thanks for that..they hold some interesting tenements, especially a couple in the ultramafic belt which always gets me excited.
Might be one to keep an eye on..cheers

[steve fleming]

Have been very busy with a newborn baby and work recently, but i see that exceptionally long dated options for SOE started trading yesterday – Souls Private Equity Limited

SOEOA expire in February 2015 - five years away!

Exercise price at 20c.

NTA of SOE currently 19c
Share price of SOE currently 9c
SOEOA traded today at 0.9c

[STRAT]

Have been very busy with a newborn baby

Congradulations Steve :t_up:

[percy]

steve
congratulations.no wonder you have been quiet!!!

[JBmurc]

yes great news steve- doing some study on SOE atm sounds good

[shasta]

Congrads you sly dog, still finding time to pick the gems!

[steve fleming]

Cheers guys...its our first, so pretty exciting!

But things seem to be under control now, so my wife hopefully will allow me to spend more time back at the markets/computer!

[JBmurc]

looks like the last couple years SOE had some major write-downs in their investments which have been mainly made up SME financial services which haven't been in favour for awhile discount to book value of their investments a postive I do like the sound of some of their SME's like AMPCONTROL

their listed portfilo
Australia & New Zealand Banking Group Ltd 5.3 4.6
BHP Billiton Ltd 1.1 2.6
Bravura Solutions Limited 2.9 0.3
Commonwealth Bank of Australia 6.3 8.2
Coca Cola Amatil Ltd 1.6 1.9
Fairfax Media Limited 1.9 0.6
Suncorp-Metway Limited 1.9 0.7
Telstra Corporation Ltd 9.6 7.4
Transurban Group 2.7 2.0
Wesfarmers Ltd 2.2 1.9
Westfield Group 2.0 1.4
Total Listed Share Portfolio 37.5 paid 31.6 book value

[Ponda]

Congratulations Steve,
One to watch for today and in the near term is BCNOA.
It has a 1 cent stike price, expiring on the 31st August 2010
Current price is 1.9 cents.
Current head share price is 3.1 cents, HOWEVER, today looks like it is going to be abig, big day for BCN and could open at 3.2.
This means that the options should be around the 2.2 (but you do have to take into consideration time decay)

Anyways, thos are just my Ponderings.

DISC: Hold BCNOA

[STRAT]

Hi Steve,
This AVB Trading halt is dragging on eh?

Starting to wonder whats goin on.

First the halt pending an ann regarding a cap raising.

Then withdrawl from quotation.

Then a substantial holdings notice which was quickly withdrawn.


mmmmmm. fishy

[jdg]

hey strat, i've just bought into AVB recently. this is an unusual trading halt. if they were just coming back to holders for the cap raising then it would all be done and dusted. clearly, they are looking at a cornerstone holding. they may give the option for current holders to buy in too, but i will be pleased if they find a big investor seeing value in the projects AVB have in front of them - it should lend much confidence to the market. it will be interesting to see.

-j

[trackers]

I've been a recent holder of AVB too (well..AVBOB), sold out last week in the rise.. Looking for a lower re-entry though as I do like the story (only sold because I think my purchase price was too high).. .Time will tell whether that was a good call or not.

The substantial holder announcement was weird.. Some guy picked up 150k worth of options (whip de doo?). I think we're looking at an institutional placing, but what would I know

[steve fleming]

Have been very busy with a newborn baby and work recently, but i see that exceptionally long dated options for SOE started trading yesterday – Souls Private Equity Limited

SOEOA expire in February 2015 - five years away!

Exercise price at 20c.

NTA of SOE currently 19c
Share price of SOE currently 9c
SOEOA traded today at 0.9c

I spent the week buying up small parcels of SOEOA from sellers who received them free in the bonus allotment on 1 March and were wanting to quickly get rid of them.
I was able to acquire enough SOEOA to now put me in the top 10 SOEOA holders.

Souls Private Equity is controlled by a very wealthy Australian family - the Milner family - who are also associated with/also control Washington H. Soul Pattinson (SOL), SP telemedia (SOT), Brickworks (BKW), New Hope Coal (NHC) Australian Pharmaceutical Industries Limited (APi) and others.

So i think in the next 5 years SOE has plenty of time to re-rate, based on the deal making skills of Souls, it will only take one deal to come off to re-rate SOE and put the SOEOA in the money.

[percy]

ESI
mentioned www.theaustralian.com.au business Criterion Tim Boreham Solar maker secures links in steel and glass. esi mention after this one.

[steve fleming]

There have been a few more capital raisings with attached options recently.

An updated list of all 340 odd options on issue as at March below:

http://www.afrsmartinvestor.com.au/t...nsExercise.xls (http://www.afrsmartinvestor.com.au/tools/tables/OptionsExercise.xls)

[Aotea]

Hi all..hope that nipper isnt keeping you up all night Steve!

Must be time for those ESIO to take off....!!
An announcement is well overdue.

[LB23]

Hi...long time lurker here.

Anyone looked at KOGO (convertible @ 5c, 30 June 2012). Trading at 2c, they recently announced they would acquire a 51% interest in CSG projects right next to Megtasco. 2 directors bought 4m shares at 2.2c on that announcement.

[JBmurc]

bit late but NAVO have a very bright future if NAV keep to their current plan
Only prob is so many others what them aswell going be fight for many to get their share

disc-holding NAV NAVO

[steve fleming]

Hi all..hope that nipper isnt keeping you up all night Steve!

Must be time for those ESIO to take off....!!
An announcement is well overdue.

Hi Aotea....all going well, so far its actually been easier than i thought it would be!

Better day for ESI today on big volume...33 million

Tincom funding announcement shouldn't be too far away...ESI's time will come.

[steve fleming]

Wow....anyone see CAPO today?!!????

Up 3,133.3% (yes...3 thousand % !!!!) in one day!!!

from 0.003 to 0.097 in one day!!! On decent volume of 17mil.

Unfortunately i hold none, but always nice to see a massive multibagger!


the power of options....

[shasta]

Wow....anyone see CAPO today?!!????

Up 3,133.3% (yes...3 thousand % !!!!) in one day!!!

from 0.003 to 0.097 in one day!!! On decent volume of 17mil.

Unfortunately i hold none, but always nice to see a massive multibagger!


the power of options....

Yeah i saw the ann, & the heads up a lousy 112.5% on just under 34m

[STRAT]

Wow....anyone see CAPO today?!!????

Up 3,133.3% (yes...3 thousand % !!!!) in one day!!!

from 0.003 to 0.097 in one day!!! On decent volume of 17mil.

Unfortunately i hold none, but always nice to see a massive multibagger!


the power of options....Astounding eh?
I guess we all live in hope of catching such a ride. Potentially life changing

[JBmurc]

Wow....anyone see CAPO today?!!????

Up 3,133.3% (yes...3 thousand % !!!!) in one day!!!

from 0.003 to 0.097 in one day!!! On decent volume of 17mil.

Unfortunately i hold none, but always nice to see a massive multibagger!


the power of options....

Yeah now thats what I call a good day your 10k turns into 300k thanks very much

....I'd be stoked if my opts NAVO,ARDO,SSNO even did 300% in a year

[steve fleming]

Bought a small quantity of RBXO the other day, the first trade in RBXO in about 3 months, and will patiently wait to pick up some more.

RBX is a small boutique gold producer that expects to be in production shortly, with onsite treatment plant already to go.

Market cap = $4.5million, which is a cheap exposurer to a near term producer.

RBXO have a 5c exercise price and expire in November 2011.

A bit of history with the Management here, but it is heavily backed by Martin Place Securities

[KentBrockman]

Has anyone had a look at WIC(O)? This one invests predominantly in producing mid sized WA miners. Options have two years to run, are already ITM, and are a fraction of their BS value. Opinions?

[snowball]

Cum a 7.5 cent dividend ex date 3 August.

[STRAT]

Has anyone had a look at WIC(O)? This one invests predominantly in producing mid sized WA miners. Options have two years to run, are already ITM, and are a fraction of their BS value. Opinions?Hi Kent. Did you dip your toes?

With a coversion price of a dollar it wouldnt take much downward movement in the head price to take em out of the money again.

[STRAT]

Hi Steve.
What are your current thoughts on ATI at this time?

[steve fleming]

Over the last few months heaps of companies have been forced into capital raisings at hugely discounted prices. As part of the raisings, to make them attractive enough, some of these companies have issued long dated options with very generous exercise prices.

These options are going to offer exceptional leverage to any share price recovery.

Over the last couple of months i have been acquiring recently issued options in companies that I consider are undervalued, satisfying the following criteria:

-Market cap under $10m
-Options with at least 2 year terms
-Exercise price of under 10c

So far i have acquired the following:
-AVBOB (X=1.5C, Apr 12, current market cap $5m)(by far my favourite - potential low cost copper producer next year)
-ESIO (X=2.0C, Jan 14, current market cap $12m)(exciting future- though progress is slow going)
-ATIO (X=0.8C, Nov 11, current market cap $10m)(this one is a bit of a roughie)

The options provide both increased exposure (more bang for your buck) and increased leverage than the heads.

I'm pretty confident that sometime in the next couple of years all these market caps will at some stage be far greater than their current levels (even if they are orchestrated pump'n'dumps). Whilst not all of these plays will come off, if handled smart enough, a portfolio of such options should deliver multi-bagger returns in the medium term.

Yay!!

AVBOB became a 10 bagger today!!

Bought my final parcel of AVBOB on 23 June 2009 for $0.007

AVBOB closed today at $0.077!

So exactly a ten-bagger!!

[Corporate]

Yay!!

AVBOB became a 10 bagger today!!

Bought my final parcel of AVBOB on 23 June 2009 for $0.007

AVBOB closed today at $0.077!

So exactly a ten-bagger!!

That is AWESOME steve. Congrats!