are you ready for a run?, page-70

Triple falling overnight on Dow, sovereign debt risk in Euro zero, fear bubble burst in China, we are almost confronted with another potential crisis. If it were another financial crisis, we would face serious paper losses if held.

CAP should be closed well above 40c in the following of a good announcement. But selling pressure remained a bit high. 120,000 selling order might from a person who is in a "financial difficulty"? I hope I am wrong.

If a person converted 2m options @15c and sold on market, he would realise a profit of $400,000.

However, it is confirmed that BMG has been committing $81m deal as announced yesterday.
Within 3 months, if CAP remained above 30c, it will have around $23m ($15m free cash plus $8 for exploring) cash at bank!!! It implies 25.5c per share in three months. So, 10c for the remaining of the deal and other projects were cheap.

CAP option is currently trading at around 20% or more premium, it is a bit abnormal as it only has around 45 days to be expired. As I posted before, oppies are associated with high risk and high return. Just be kindly reminded the oppie is expired 30 Jun 2010.