For me it is not just about leverage, it's about risk, management, and future potential, stuff that you can't always easily get into an equation.
Capital preservation is key. Risking a profit to me is not quite the same as risking the initial capital outlay. Many traders as you know apply a similar approach in what is called a 'free carry'.
While EKA may eventually = 62c when ADI = $1, along the way I feel the ratio will be skewed to ADI which is what we are seeing at the moment. I feel ADI's progress will be more steady, EKA will be more explosive when catching up on the first signs of positive news.
Perhaps a nice trading strategy can be applied to take advantage of both.
A
EKA Price at posting:
6.7¢ Sentiment: None Disclosure: Held