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981 Posts.
73
22/02/12
11:25
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Mr Deeds,
the difference is more stark when the SP's really fly to 20c prior to expiry of the AKKOA's
Using your example (a bank of $30K to invest)
a.) I buy 1,000,000 AKK @ 3.0c = $30,000
b.) I buy 5,000,000 AKKOA @ 0.6c = $30,000
In one years time AKK is trading at 20c...I decide to sell!!!
Example a.) 100,000 AKK heads now worth
1,000,000 x 20c = $ 200,000.
So nett profit equals $200,000 - $30,000 = $170,000.
Example b.) AKKOA now worth 14.5c (20c-5.5c=14.5c)
5,000,000 AKKOA x 14.5c = $725,000
So nett profit equals $725,000 - $30,000 = $695,000 !!!
Mate, that's more than half a $million better off
I'm excited!
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