They are a funny thing - first I agree they are needed but they don't always do the best thing for shareholders (or especially option holders).
Take this 10 for 1 proposal.
SP will be 16c from todays close and oppies will be 5c with a 50c strike.
Is it just me? I think the 0.5c oppies seem cheap for a 5c call with the heads at 1.6c but 5c oppies for a 50c call with the heads at 16c seems expensive!
Oh well - we will see. ORP still needs more cash - they were trying to raise $2m from the 100m share issue and they only got $1.2m so I suspect the new shares will end up at 10c at some stage which means the new oppies could trade 2-3c in that space of time.
Of course none of this will happen cause the D7 blcok will finally be approved and they will go to $1 instead . . .
They are a funny thing - first I agree they are needed but they...
Add to My Watchlist
What is My Watchlist?
