Australia's largest stock trading and investment forum Australia's #1 stock forum

LOM

0.00%

7.2¢ lucapa diamond company limited

LOMOB, page-47

First 47 Last

Share
Profile

Follow
PepperC

788 Posts.

19/02/16

08:05

Post #: 17060502
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

Hey zippy, sorry but you haven't stumbled across the holy grail of investing. The downside risk is equal to the upside risk.

If you're not converting then this is just a leveraged play in a spec share. Good luck.

If you are converting then the downside risk when lom > .30 is the premium and if lom goes under 0.30 you've done your dough.

Nothing in this game is win/not lose.

LOM Price at posting: 38.0¢ Sentiment: None Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

Warren Tredrea’s weekly sports business wrap: the latest on business in sport

Week 29 Wrap: Trump in spotlight again; China's Third Plenum a yawnfest; RBA's August move a mystery

Talking Australia's very competitive property landscape: Realty Talks

AI stocks: What to expect in 2024-25

Wealth Within considers potential takeover targets in Australia's booming infrastructure industry

IMR

Imricor raises $35M to pursue growth and expansion into Australia and NZ

GNX

NSW approves J-POWER's $380M buyout of Genex Power, giving it ownership of QLD net zero project

LKE

Lake Resources implies news article on job cuts made up; non-core sales "not material" and no rule 15.7 breach

FG1

Flynn Gold flags mid-grade drill hits and always eye-catching rock chips

MCT

Metalicity looking for offers on Admiral Bay zinc project

There are more pages in this discussion • 173 more messages in this thread...

First 47 Last

Add LOM (ASX) to my watchlist

(20min delay)
Last 7.2¢		Change 0.000(0.00%)		Mkt cap ! $20.88M

Open	High	Low	Value	Volume
0.0¢	0.0¢	0.0¢	$0	0

Buyers (Bids)

No.	Vol.	Price($)
1	155809	7.0¢

Sellers (Offers)

Price($)	Vol.	No.
7.2¢	157173	1

View Market Depth

No.	Vol.	Price($)
1	155809	0.070
1	19829	0.066
2	260000	0.065
3	227722	0.064
2	84801	0.061

Price($)	Vol.	No.
0.072	157173	1
0.073	139658	1
0.075	8968	1
0.076	85000	1
0.077	70000	1

Last trade - 16.12pm 19/07/2024 (20 minute delay)

LOM (ASX) Chart

Day chart unavailable

LOMOB, page-47

Warren Tredrea’s weekly sports business wrap: the latest on business in sport

Week 29 Wrap: Trump in spotlight again; China's Third Plenum a yawnfest; RBA's August move a mystery

Talking Australia's very competitive property landscape: Realty Talks

AI stocks: What to expect in 2024-25

Wealth Within considers potential takeover targets in Australia's booming infrastructure industry

Imricor raises $35M to pursue growth and expansion into Australia and NZ

NSW approves J-POWER's $380M buyout of Genex Power, giving it ownership of QLD net zero project

Lake Resources implies news article on job cuts made up; non-core sales "not material" and no rule 15.7 breach

Flynn Gold flags mid-grade drill hits and always eye-catching rock chips

Metalicity looking for offers on Admiral Bay zinc project

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

LOMOB, page-47

Top Stories

Warren Tredrea’s weekly sports business wrap: the latest on business in sport

Week 29 Wrap: Trump in spotlight again; China's Third Plenum a yawnfest; RBA's August move a mystery

Talking Australia's very competitive property landscape: Realty Talks

AI stocks: What to expect in 2024-25

Wealth Within considers potential takeover targets in Australia's booming infrastructure industry

Imricor raises $35M to pursue growth and expansion into Australia and NZ

NSW approves J-POWER's $380M buyout of Genex Power, giving it ownership of QLD net zero project

Lake Resources implies news article on job cuts made up; non-core sales "not material" and no rule 15.7 breach

Flynn Gold flags mid-grade drill hits and always eye-catching rock chips

Metalicity looking for offers on Admiral Bay zinc project

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News