I think it was Warren Buffett who talked about the power of...

I think it was Warren Buffett who talked about the power of compounding. NCO shareholders will have a similar opportunity to put Buffett?s wisdom into action with the option issue.

Notwithstanding a couple of false starts with the option issue, according to the report of 18 May, ?It is the Company?s intention to issue a new Option Entitlement Issue Prospectus in the near future and will advise the market of the new time table accordingly.? This is effectively telling us that the option deal is still on.

When the option issue was announced, the stock was sitting around the 15c level & barely trading. Fast forward 2 weeks & these oppies are in the money with 5 years to run. At Friday?s close of 22.5c, that makes them worth about 7.5c ? not bad for a 1c investment.

Consequently, assuming something is cooking with the stock & even though the stock is up about 50% over the last week, you can pick up 2 pieces of paper for 23-23.5c, still not a bad deal at all.

Now let?s assume that the stock moves to the 30c level, the oppies will be worth about 15c (if not more), and you have almost doubled your money. You guys can do the sums assuming higher share prices ? it?s exponential, almost like Buffett?s power of compounding.

Obviously this all depends on the shares continuing to perform, but as discussed on previous posts, this time things look different. Here's hoping.