IMO, KIKO seems a better bet than the FPOs in this one. Downside is limited to nil value of the options which are trading at about a third of the value of the heads currently.
Normally I'd stay with the heads but if this target fails the heads are going to be worth basically nothing anyway; the company is virtually sunk without success on this well.
So it seems that options will deliver a smaller loss in the event of failure while providing almost as much upside in the event of good news. Plus the additional option for 2013 upon conversion won't hurt either.
KIK Price at posting:
3.1¢ Sentiment: Buy Disclosure: Held
