I offer the following analysis, which convinced me (as a believer in AKO's prospects) that I should not only subscribe to my entitlement but to apply for substantially more! AND I DID!
At a share price of $0.57, if you convert your options to shares by paying the $0.25 and sell these shares for $0.57, you have not only recovered your investment but at that time you have AKO shares worth 3.6 the investment you subscribe for. WHAT A RETURN!!
Follow the numbers I present here. Assume you had 100,000 shares in AKO on May 4 and only want to subscribe for the number of shares and options you are entitled to. . You pay $3200 and in return receive 20000 shares and 10000 options convertible to shares at $0.25.
When the AKO price rises to $0.57 (and I believe it will by year end) you decide to convert your options to shares and sell them on market for $0.57. It will cost you $2500 to convert the options to 10,000 shares but you sell them for $5700. Profit from converting the options $3200 - which is exactly the cost of having subscribed ! But the beauty is that while you have recovered the cost of the this incremental investment in AKO, you still have the number of shares you originally subscribed for , notably 20000 shares worth $11,400 - 3.56 times your original investment , together with all the upside on the 20,000 shares from there!
Do the maths yourself. The ratios are the same on any amount you want to invest.
One of the best opportunities I've come across in many years!
AKO Price at posting:
16.0¢ Sentiment: Buy Disclosure: Held
