that is why the issue was so oversubscribed...by youthful...

First 195 Last

Share
Profile

Follow
rosencrantz

2,805 Posts.

590

09/03/21

11:27

Post #: 51622480
Share

Originally posted by SentryBox77: ↑

They LENT it to APT for 0% interest in return for a Call option on the stock ($194). The real value of that option is that hedge fund style Instos can short the stock and have a guaranteed stop loss at $194 - something that has a great deal of value over a 5 year time frame. APT has only been a very lightly shorted stock to this point and I would suggest that's because the derivatives market has been virtually non-existent, so if you're trading in size you can't get cover for big short positions - $1.5 billion of Call options is a game changer in that respect - that is why the issue was so oversubscribed.

The loan will need to be repaid on expiry if the stock is below the strike. It becomes a bad deal for shareholders if the SP is a lot lower. For example/comparison sakes, if the SP was $40 versus $180 at expiry then APT would have to issue 4.5x more stock in a capital raising (if that's how they were coming up with the money) to repay the loan. So the lower the SP goes the more dilutive the CN deal becomes for ordinary shareholders.

Expand

that is why the issue was so oversubscribed...by youthful dilettantes, with no experience of the downside of stock market bubbles who will be hoing that their egregious stupidity is forever hidden from public view .
APT price cannot and will never get within a bull's roar of $194.
taking my profits in APT short position .

APT Price at posting: $100.12 Sentiment: None Disclosure: Held
4 Upvote

0 Great analysis

Reply

Top Stories

Week 37 Wrap: HotCopper likes Cuban oil; markets shrug debate off for Putin; firebrand quant says social media a market threat

ASN

Utah authorities sign off on Anson's lithium extraction plans at Green River

MM8

Medallion Metals kicking off 15,000m drill run at Ravensthorpe gold play

NAM

Olam Agri raises Namoi takeover offer to 75 cents a share and receives shareholder backing

Dale Gillham's weekly wrap: US fracking support boosts outlook for Australian gas stocks

ENV

Enova Mining unveils "high-grade" REE drill hits at Coda North, Brazil

AZY

Antipa divests its Citadel interest to JV partner Rio for A$17M, refocuses on Minyari Dome

MLS

Metals Australia kicking off plant study at Lac Carheil; Canadian tariff tailwind potential

VUL

Vulcan appoints investment bank and M&A veteran to board

MKG

Mako sniffs gold at 170 g/t at Cote d’Ivoire's Napié play

There are more pages in this discussion • 1 more message in this thread...

First 195 Last

Add APT (ASX) to my watchlist

that is why the issue was so oversubscribed...by youthful...

Top Stories

Week 37 Wrap: HotCopper likes Cuban oil; markets shrug debate off for Putin; firebrand quant says social media a market threat

Utah authorities sign off on Anson's lithium extraction plans at Green River

Medallion Metals kicking off 15,000m drill run at Ravensthorpe gold play

Olam Agri raises Namoi takeover offer to 75 cents a share and receives shareholder backing

Dale Gillham's weekly wrap: US fracking support boosts outlook for Australian gas stocks

Enova Mining unveils "high-grade" REE drill hits at Coda North, Brazil

Antipa divests its Citadel interest to JV partner Rio for A$17M, refocuses on Minyari Dome

Metals Australia kicking off plant study at Lac Carheil; Canadian tariff tailwind potential

Vulcan appoints investment bank and M&A veteran to board

Mako sniffs gold at 170 g/t at Cote d’Ivoire's Napié play

Featured News