mr markes, page-34

bet on caz winning - great idea sue 12 sue12

You are saying that I could place a bet with a WA bookmaker at say 18:1 odds on CAZ winning. Then all I have to do is:

Place $5,000 on CAZ at 18:1

AND

Go short on 25,000 CAZ shares (if that takes 100% collateral, I'd have to put down $40,000)

If CAZ wins and goes to $4.00, I make $90,000 on my bet, but have to stump up $60,000 for losses on the short share position so make a net $25,000.

If Rio wins and CAZ goes to $0.40, I lose the bet, but make $30,000 on the short shares, less the $5,000 bet = $25,000.

So for an outlay of $45,000 I am guaranteed to make $25,000 in the next couple of weeks - whether or not CAZ wins.

Now that sounds like a great deal...

Obviously I'd scale right up, since there is no risk - hell make it a $100,000 bet and a short position of 500,000 CAZ shares -> that would yield $500,000 either way.

All you need to do is advise the name of this bookmaker that will give those kind of odds ...

Nix