If you're a long term investor you'd buy heads because monthly...

First 43 Last

Share
Profile

Follow
Timmyk

2,248 Posts.

374

19/02/16

00:30

Post #: 17059829
Share

Originally posted by zippy1 ↑

harnz121279

I also suspect that there is a good chance of a long overdue announcement tomorrow. It's been a while "in LOM terms" since the last (positive as they all have been) announcement.

A good way to make the faithful LOM believers have a nice weekend ... and will allow the other to ponder and once again reassess their investment style.

LOMOB is a great buy at the moment ... minimum or no premium on LOM share price (which has never before the case) and great leverage potential considering that the probability that LOM share price will rise as oppose to fall between now and April 2016 is as good as guaranteed.

If you were considering buying more LOM share at the moment, you would be better off buying LOMOB options. Why?

Option 1: If the LOM share price were to rise significantly before 29 April 2016, the LOMOB would provide a significantly higher capital gain due to the leveraging factor (and you could then either convert or sell your LOMOB and enjoy the benefits of spending the gain).

Option 2: If the LOM share price did not rise fell (which would most likely not be significant) and would make ScottJ happy, you would simply convert the LOMOB options (pay the $0.30 exercise price) and be in a very similar as if you had purchased the LOM shares now at $0.40 (total).

In other words, if you wanted to buy LOM shares now at approximately $0.40 cents, you would definitely be better of buying LOMOB options (with minimum premium) which would give you the potential opportunity of making a significant capital gain before 29 April 2016, due to the leveraging power of LOMOB or be in a similar position as having brought LOM shares directly.

In other words, you could potentially benefit from the upside but not have any downside.

So it's a Win / No lose situation!

I'm sure the 1.85 million (73% of the LOM heads volume) LOMOB option buyers today have already realised the above.

P.S.- Value of todays trade volume:
LOM 2.516 m x say $0.39 = $ 980 k (84.1%)
LOMOB 1.850 m x say $0.10 = $ 185 k (15.9%)
... yet each LOMOB share (which only costs 25.6% of a LOM share now) has as much potential dollar value profit as each LOM share.

If you are a long term investor, why would you buy LOM shares at $0.39 / $0.40 ... as opposed to a LOMOB option (with minimal premium)?

Hope we get the anticipated / next positive announcement tomorrow (or should I say today) ... and if not, lets be patient as the longer it takes (in my opinion), the more positive it will be.

Happy Investing,

Zippy1

Expand

If you're a long term investor you'd buy heads because monthly fluctuations wouldn't matter.

I like your enthusiasm and I'm balls deep myself, but just in case history repeats, I'm not buying Lomob

LOM Price at posting: 38.0¢ Sentiment: Buy Disclosure: Held
5 Upvote

0 Great analysis

Reply

Top Stories

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

'We're looking': Nickel-rich Indonesia sounds graphite warning to Aus producers

Finance school vs reality: What they don't teach you about the stock market

Making money: How many microcaps should be in an investor's portfolio?

The Altcoin Landscape (Part 1): Key alternative cryptocurrencies to watch

There are more pages in this discussion • 177 more messages in this thread...

First 43 Last

Add LOM (ASX) to my watchlist

(20min delay)
Last 4.3¢		Change 0.002(4.88%)		Mkt cap ! $12.47M

Open	High	Low	Value	Volume
4.3¢	4.3¢	3.9¢	$46.91K	1.168M

Buyers (Bids)

No.	Vol.	Price($)
1	15000	4.0¢

Sellers (Offers)

Price($)	Vol.	No.
4.3¢	98857	1

View Market Depth

No.	Vol.	Price($)
1	15000	0.040
1	77958	0.039
1	45446	0.038
1	13000	0.037
1	83360	0.036

Price($)	Vol.	No.
0.043	98857	1
0.044	59148	1
0.045	125700	3
0.046	180000	1
0.047	24900	1

Last trade - 16.10pm 28/10/2024 (20 minute delay)

LOM (ASX) Chart

If you're a long term investor you'd buy heads because monthly...

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

'We're looking': Nickel-rich Indonesia sounds graphite warning to Aus producers

Finance school vs reality: What they don't teach you about the stock market

Making money: How many microcaps should be in an investor's portfolio?

The Altcoin Landscape (Part 1): Key alternative cryptocurrencies to watch

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

If you're a long term investor you'd buy heads because monthly...

Top Stories

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

'We're looking': Nickel-rich Indonesia sounds graphite warning to Aus producers

Finance school vs reality: What they don't teach you about the stock market

Making money: How many microcaps should be in an investor's portfolio?

The Altcoin Landscape (Part 1): Key alternative cryptocurrencies to watch

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News