Buy 100,000 FFX today (0.885c) $88,500. Get 20,000 LLL (5/1 @ $2.00) $40,000 Easy money it seems...
All depends on the value of FFX after demerger and what SP/MC of LLL does.
If todays price has FFX calculated in and after demerger/cut off falls more than the value of your free LLL then no it's not great.
Say FFX falls to 40c (440M MC around) then your holdings lose $48.5k but you get to add on your LLL value (FFX $40k LLL $40K) your at 80K and down $8.5KIn theory....I think I'm right.
But saying that, I think FFX should be valued at around $600M - $800M so between 50c to 66c so then you have $66k plus your $40k of LLL Total $106K...happy days.Hope get gist..
Yet just say you 100,000 FFX cost you $1.50 a share and $150K and then after demerger your FFX worth the $66K and your LLL $40k your will be down $44K.Hope helps.
But again maybe LLL could double on listing or with a few weeks like other Li stocks and FFX go up with the Gold and holding 20% of LLL then your break even ish on your $150K investment with a bright future.
I think you can buy up to around $1.10 - $1.25 and be looking at a great few years ahead with plenty, I mean plenty of upside..All theory and my own thinking...please DYOR.
FFX Price at posting:
88.5¢ Sentiment: Buy Disclosure: Held