CDU 0.00% 23.5¢ cudeco limited

zz,Say that you are looking to take up your quota of 1000 new...

  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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