fllying high, page-4

but the strike price is well beyond the current price and 4 years out so i think you have to discount them at current prices they are too low to excercise

I made a mistake double counting 60mn of shares. So their total outstanding is 108mn. I did not discount the 107mn of options on issue regardless of whether they are in the money or not, much like how I have included all options for VPE even though some of them are so far out of money (strike price of 3.50).

So with 215mn on issue, their fully diluted market cap is 24.75 million. Their stake in VPE is worth 22mn - so still leaves a premium of 2.75mn.

yes, I agree if you ignore the options (which represents nearly 50% of oustanding issue), then ODN is trading at a "discount". However, the fact that the options (though out of money) are on issue should be included because one has to assume the worst case scenario when valuating the company. If we start assuming all the positives, then I can make VPE's net worth shoot up to 300-400mn.

Just my views of course...

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