Short Term Trading Weekend Lounge 7-9th July

Originally posted by xindongzuitaohua ↑

guys

no more post from me as per AR1 after this one and i will let it play by itself.....

yes, i did my research indeed and calculations about buying and holding AR1..

buying at 1.1 will get you breakeven when it consolidated to 2c but you do get In specie for EGYPT projects compensation plus 1 for 1 loyal option...

buying at 1c will get you 11% profits when it consolidated to 2c plus EGYPT projects compensation plus 1 for 1 loyal option...

i have no idea of the in specie will worth how much now but from what i knew and @Bagman22stated, the overall expense was around $30 million plus the losing of off take contracts etc due to the unlawfully decision from Egypt government...

so when there is a agreement reached between AR1 and egypt government, even half of expense compensated to AR1 will be $15m without even add up those off takes contracts lost so it could be $10m return to us old AR1 holders after law firm payments and success fee charged by 3 directors, which $10m divided by 139m SOI will be 7.15c per 1 unit which gives $7150 dollars for every 1m units share you held..

as for 1 for 1 loyal options, given Hunter fully underwrite that $5m CR and only get 1 for 2 free option so the value of option could be at least 0.1c CONSERVATIVELY speaking, although there are many real case Option even trade at premium to heads, such as CHK, convert at 1.8c but trade at 0.6c when first list while heads only traded at 1.6c and BMG, convert at 2c but trade at 0.4-0.5c when heads only 1.1-1.2c....

imo, HEADS of AR1 after re list should be way over 2c so option could be a big bonus on top of the above...

i really surprised many just stay away from AR1 for the 1 for 1.8 consolidation while did not do bit house cleaning and calculation.....

please note, in order to comply with re list chapter1/2, the company need to meet either 1 or 2 of the following:

EITHER

the market cap of the list entity should be no LESS THAN $15m, so at 2c with all SOI added, it is only $11.6m

Or

there are 300 shareholders with minimum HOLDING VALUE no less than $2000 dollars.
(if you hold 1m shares, sp needs to be 2c, and if you holds only 800k units, sp needs to be 2.5c and the less shares you holds, the higher the sp to meet that thresholds )

so make you guys mind about the sp of AR1 and grab the opportunity when it present to you....

please DYOR and have a clear understanding about this Junior which could have a decent run in the next 3 months....

you really cant judge a company by ST sp performance....

thank you.

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That does look very complicated; and especially considering that a panicked (and economically challenged) foreign government is involved. Ref: Tanzania. It could end up a lot worse than anticipated.

I have a general rule that if it is overly convoluted, I steer clear. There are too many other options available. Thank you for the informative post though: I do wish you well and hope it pays off.