I understand where you are coming from ... although do not agree.
Yes, yes this will only happen if the heads and therefore the LOMOB's go up ... in my opinion it's not and "if", it's a "when" ... and all signals indicate that this will be before April 2016.
The gearing \ leveraging advantage of the LOMOB is not fixed (4:1) ratio. You will find that the ratio / percentage will rise exponentially as the LOM share price increase.
The whole purpose of the LOMOB gearing / leveraging is the fact that you do not have to buy 4 times the LOMOB options with the same amount of capital that you would have invested in LOM ...you simply buy the same number of LOMOB options as the number of LOM shares you wanted to buy, for 1/4 of the funds. The other 3/4's of the funds that you have not yet used can be invested elsewhere (even in LOM shares!!!) until April 2016, at which time you would relinquish the 3/4's of the funds to exercise your LOMOB options.
If you intended investing $40,000 in LOM now ... you could invest $10,000 in LOMOB and $30,000 in LOM.
Example: If LOM shares went to $0.80 before April 2016 ... your profit would be $65 k ($50 k from LOMOB and $15 k from LOM) ... as opposed to $40 k if all $40 k were only invested in LOM.
Hope this assists ... anyway each to their own and I can understand why investors may be hesitant to buy LOMOB based on what happened historically ... the significant difference is that LOM is in a completely different place (progressed significantly) than where it was when the former LOMO options expired.
Zippy1
LOM Price at posting:
38.0¢ Sentiment: Buy Disclosure: Held
(20min delay)