jkaob is on drugs, page-4

Hi bozm,

Don't get me wrong, i hold a small parcel of JKAOB and like the risk reward prospect but i think you're taking a punt, like the rest of us.

If JKAOB was instantaneously convertible and very liquid then you would be correct. But when the price of an underlying asset is only 10% above the exercise and the standard deviation of daily closing price is very close to that figure also, then it's hard to call that arbitrage.

I don't think it will happen but if the market was to head lower again and the price of JKA was to say be at 14c in two weeks' time, then by the time the new shares are issued, you would be sitting on a loss already. But you'd still own something of value. The shares have infinite time value, which is the big difference here. Whereas the BOBs have the chance of being worthless.

I think that's what's holding punters back at the minute. If we can hold around 20c next week, i think you will see some more serious intetest.

Cheers
H