CDU 0.00% 23.5¢ cudeco limited

Ann: CuDeco Rights Issue Update , page-29

  1. 168 Posts.
    zz,

    Say that you are looking to take up your quota of 1000 new CDU share at $2.50, get the "free" options and then later take up the second 1000 shares at $2.50.
    That will cost $5000 all up to own an extra 2000 shares.
    If that is your desire, then why not buy 2000 shares today at $2.06 for a total of $4120?


    that's ok if you're cashed up (which aka might well be), but if funds are tight...

    spend $2,500 to buy 1,000 share-plus-option rights today.

    in 2 years, sell the options on market for an immediate profit without cost -- assuming the options are in the money.

    the question then becomes; do you have $4,120 to spend? or $2,500?
    not only is the $4,120 purchase a significant 64% more than $2,500, it is also riskier.
 
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