bought some gipo yesterday/ salty, page-13

re: bought some gipo yesterday/ king gee King Gee, I have been in options off and on, one of the better ones was PRKO (was LACO).

I think that in this GIP case, I find that if the share moves 1 cent, the option moves about the same, thus the leverage as percentage of the original input is good and of course much higher than when having shares.

If the BFS is successful, the leverage wil still be good but needs to decrease as the capital sum increases.

One problem with many mining options is that to partake in a SPP (shareholder placement), one has to convert the option to a share and that of course cannot always be done.

If a discount to shareholders only is made then the discount can be very heavy and in that case an option holder may suffer as too many shares are being created, yet it is nor really on to convert to shares first in order to pick up the new shares.

I tend to favour companies where placements are made within 24 hours to Institutions etc. This is to reduce the risk while a Trading Halt takes place.

I like a clean placement without complications.

GIO used Kirke Securities for raising cash and somehow I don't think they will call on shareholders which will suit me. Of course anything could happen if a large issue of shares is involved.

As to buying shares, there are very few being sold and I am not the type who wants to wait that long for a very decent parcel.

I also can buy nearly twice as many options as shares.

Readers, this is a speculative stock and the outcome is not certain.

Gerry
Readers, please do your own research and you decide if and when to buy, hold or sell any stocks.