This morning I posted on the GDN site my reasons for buying GDN and GDNOA.
I have been offloading my WCUO's and picking up GDNOA's for the following reasons.
WCUO'S have two and a half months to expiry date. We are now in a game of brinkmanship re timing for positive announcements re WCU project advancement. When will the next report be out? If its a bad report (ie delays) the the options are down the drain for holders who paid upwards of 1 cent. If its positive then up goes the share and option price.
WCUO's are 25 cent to exercise. Most of us really don't want to stump up 25 cents.
GDN holds 1/3 ownership of WCU. If WCU goes up then GDN at 0.04 cents and GDNOA's at 0.007 cents will also rise.
If WCU rises significantly then so will GDN and its options. At current prices GDNOA rise multiples will be greater than WCUO's under any upward circumstances.
GDNOA's expire November 2010. Between now and November 2010: *WCU may commence initial production of uranium ore *WCU may list on the TSX *WCUO options expire (Jan 2010) *GDN owns 1/3 of WCU *GDN will drill Paradox 3 (approvals now being sought) *GDN may prove Paradox 1 and 2 to be commercial *GDNOA's with a 12 cent exercise price may improve dramatically with multiple bag returns.
In short anyone looking to jump out of WCUO's but still retain a holding with an interest in the outcome of the WCU development plus the additional benefit of a gas drilling operation can do so by picking up GDNOA's and moving out of WCUO's before it may be too late to redeem funds from WCUO's.
Do your own research but this is an option worth considering.
WCU Price at posting:
22.0¢ Sentiment: None Disclosure: Held
