another few cents , page-8

You may be ahead of your time a little Warnie with 0.30 cents in 30 days. But come Sep 08 you will be spot on the money imo.

You see, I met a drunk in Hyde Park last week. I was troubled, so I asked him "Why would PSP issue 30 million fpo shares at 0.15 and 30 million options at 0.30 cents to expire in Sep 08? The length of time to expire is very short and they stand a good chance to be out of the money. Why would they do that?

Why not simply issue 60 million at 0.16, 0.18 or even 0.20?

Interesting what he said to me.

Apparently 30 million shares were issued at 0.15 to keep it under the 15% FIRB limit. Shougang will now apply for approval to exercise the options, which if granted will take the holding to 19.9%. So what i hear you say !

Well, If Shougang get the FIRB go ahead they will exercise at 0.30 irrespective of PSP current share price just to get the stake they want. That makes their average $0.23

Hmmm, that makes anything under 0.23 cheap according to their average. I wonder who's slowly accumulating shares at at the moment. Once they exercise, the sp will run.

I'll go one step further, lets say PSP and Shougang shake hands on a deal to say there will be no significant announcements until Shougang accumulates as much stock as they want between now and the September oppies exercise.

Watch the announcements after September.