"Example: If LOM shares went to $0.80 before April 2016 ... your profit would be $65 k ($50 k from LOMOB and $15 k from LOM) ... as opposed to $40 k if all $40 k were only invested in LOM."
Zippy:
I don't totally disagree with your perception except for one point.
If the shares go back to 30c and you haven't sold your LOMOBs then at April 29th you wont need to exercise and you have lost 100% of your money.
Don't get me wrong, and I have a substantial LOMOB holding, but new investors may not be aware of the risks and they may only look at the gearing benefit of an upside.
The important thing is that investors consider both sides of the coin.
LOM Price at posting:
39.0¢ Sentiment: Buy Disclosure: Held
