FFX 0.00% 20.0¢ firefinch limited

Some people screaming over this as though we are all out of...

  1. 127 Posts.
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    Some people screaming over this as though we are all out of pocket are hurting my brain. I'll share my own calcs for break even point and SP values for proportional gains. While the amounts may be different, the percentage at the bottom should be the same if you followed a similar strategy to me.

    Assumptions:
    • The base for these calcs is the close price yesterday of 95c (not your personal average buy price), so you can determine what SP for both companies is required in order to profit off the demerger itself.
    • I took my full allocation with no additional shortfall

    Results:
    1. If FFX stays at 40c, I need LLL to list at 76c to break even
    https://hotcopper.com.au/data/attachments/4401/4401886-3431f7071a8750c4e68a6aa074362060.jpg
    2. If FFX stays at 40c, and LLL comes in at $1, I've made 20% profit
    https://hotcopper.com.au/data/attachments/4401/4401900-6beeaa5ec48cfff1b64b4ede6c74321c.jpg
    3. In a few months when this settles, my personal forecast is FFX at 60c and LLL at $1.25, yielding a 60% gain
    https://hotcopper.com.au/data/attachments/4401/4401912-7b5fd3f661fcd19401f714f1b112568a.jpg


    Sorry for all of you who can and have done this yourself but it might help some of those who think they will have to sell their house. Hopefully this provides some clarity and we are by no means out of pocket yet.

    Good luck to all!
 
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