i'm not sure how many of you all have got the ADOOA options expiring 1st Feb 2011 at 6.5c. looking at the volumes since its avail, there has been ~3million traded. there are 81mil ADOOA, so i guess the major holders are still holding onto this.
Ado chairman holds 40mil.
so there might be several scenarios that might be happening leading up to 1st Feb.
1. change of substantial holdings -selling of FPO notice by chairman -followed by conversion of ADOOA to FPO.
this scenario is likely due to the big sum of money required to fully convert. he needs about $2.6mil to convert so understandably he might need to sell to fund the conversion.
2. change of substantial holdings -full conversion without selling of FPO.
if this scenario eventuate, there is strong indication/vote of confidence in ADO
3. non conversion of ADOOA - highly unlikely
i reckon 1 is more likely thou i'm hoping for scenario 2. but i guess SH should be aware of the situation to better manage their expections.
ADO Price at posting:
8.5¢ Sentiment: Buy Disclosure: Held
