Australia's largest stock trading and investment forum Australia's #1 stock forum

EAI

Click for more information

0.00%

79.0¢ ellerston asian investments limited

Ann: Investment Update, page-12

First 12 Last

Share
Profile

Follow
TheCapatilist

4,655 Posts.

116

17/04/21

15:12

Post #: 52538161
Share

Originally posted by nicleeson: ↑

Yes there is a chance the options may not finish in the money so dilution may not be much of an issue. That scenario isn't too good if you hold GC1 shares though as it means the underlying portfolio is probably still not doing much. Strike price on some options is 75 from memory. i.e. If no shareholders are exercising these as we near October well it helps with lack of dilution but probably means the portfolio and shares are struggling.

If the portfolio shoots the lights out in the next 6 months I am just making the point that those considering buying the shares right now might see a bit of dilutionary effect in that scenario. Due to this all things being equal you might want to see a larger current discount to NTA than you might normally look for in a LIC with no options outstanding.

Expand

@peejay2 and @nicleeson,
GC1 have options, 1 for every 5 shares held, expire October 2021 exercise price of 75 cents.

for each of those options exercised you get another option, expiry April 2023, exercise price of 95 cents.

Plus there is the hybrid notes

EAI Price at posting: $1.17 Sentiment: None Disclosure: Not Held
2 Upvote

0 Great analysis

Reply

Top Stories

Bitcoin hits fresh record as instos pile into BTC ETFs – and Trump helps, too

Palladium's the newest geopolitical hot commodity. But ASX exposure is limited

Week 44 Wrap: Relatively boring week ahead of US election; HotCopper's most watched; Oz inflation at 3.5%

MIN

Movers and Shakers: Zip Co, MinRes, Kuniko, more – The week's top ASX gainers

MIN

Ellison slapped with $20M sanction from MinRes but will stay on as leader – for now

First 12 Last

Add EAI (ASX) to my watchlist