if you want your entitlements........dont sell, page-33

For christs sake...

I really do not believe so many thick individuals exist...which is why I actualy think they do not and what we see every time one of these "entitlment" issues comes around, is a whole lot of agenda driven crud, pawned off from those with the sole intention of selling on the ex date, but not wanting others to do likewise.

But why one would do so, frankly, is beyond me, as it will only result in lost profits and ultimately, signgificant opportunity loss.

This of course is my opinion, other may not see it this way of course...tere will always be those who will act to the trading "minite" and not beyond.

As for the entilement issues, to make this absolutely clear...

Imagine the "ex date" as big blue stamp that marks every transaction from that point forward. Every share bought on the ASX with this blue stamp (from the very first trade on the "ex date"), will not be entitled to options...period!

In absolute clarity; whatever number of CVI shares your portfolio shows after the close of trading this Tuesday night (the day before the "ex" date, will be subject to the entitlement offer...this is all you need to worry about!

Based on this number of shares, divide it by 5 and this is how many options you will be offered as an entitlement. You can choose to take all or just some of them by paying 4c for every option you want, or simply do nothing and your options will go to someone else.

If you do pay the 4c per option entitlement, some time in November they will likely be deposited straight into your account (if you are registerd via seats), and listed to trade on our exchange just as any other company option might.

Options can be bought or sold just like any other shares.

These options have a 15c exercise price and expiry in November 2009, this means you have until this time to either sell them on the open market, or "exercise" them by paying 15c per option held (which you can do at any time by the way), after which they will be converted to normal shares, adding to your existing holdings.

Assuming the shares are trading at 50c by the time they are listed and in our accounts, the options will be "worth" approximately 35c each, but likely trade on the market higher given typical "life premiums" applied to such issues. If we deduct the 4c paid, this equates to a 31c "stag profit" on the "true value scenario, or some 675% profit on our 4c investment.

If the shares are trading at 50c by the end of November, some 4 weeks from now!

We may however decide to exercise our options into normal fully paid shares, in which case we end up paying a total of 19c (4c entitlement price + 15c exercise price), to effectively get a share worth 50c.

If the shares are trading at 50c by the end of November, some 4 weeks from now!

There are many ways to work the maths here, but which ever way you look at it, the most profitable outcome over the next 2-3 months, in my opinion, is to do absolutely nothing.

Just remember this...whilst our accounts will not show it for 4 weeks or so, as of Wednesday morning this week, each and every one of us will be sitting on an effective gain on our positions in the 10%+ range...and likely to compound into even higher returns as the share price continues to rise.

All we need for this scenario to unfold is for the company to continue to pursue stated aims, and continue to keep ticking those boxes.

I don't think I have ever heard a more blatant "heads up" from a CEO in a long time...I suspect many will not realise this till later however.

As I see it, it will either all come unstuck on the back of 100% failure of all 3 of the potential company making deals on the books...and indeed, zero results from Catabola...or...the company will do exactly what the CEO is suggesting it might and many will look back at a later date and say how "obvious it all was".

lol...in retrospect of course!

This is the measure of risk we must use here...either you are prepared to wear this risk now (or much earlier as some of us did) and show a degree of loyalty in managements capacity to achieve stated goals, or you might like to wait for more robust confirmation, perhaps after the first major projects lands, but in doing so pay higher entry prices.

This is a personal call...and one each of us should make according to our own levels of research and risk tolerances.

Cheers!