long term production target increased, page-13

andrewss wrote: "As a holder solely of PIROA, getting frustrated by the 3-5c gap - anyone else holding options and considering converting early?"


i'm constantly surprised by the number of listed companies on the asx where the options trade at a net discount to the heads.

i hold only piroa and the extra leverage they afford has served me well over the last 8 months.

the way i see it, the price gap between the heads and options is only significant at 2 times:

1) the time when you are considering whether to buy the options (vs buying heads) and;

2) the time you are planning to liquidate your holding.

if the gap is still significant as the time approaches when you're considering selling (assuming this is before options expiry date), i figure you can exercise the options and then you're ready to sell the heads when you want.

the liquidity of piroa is also much lower than the pir heads so, if you're planning to sell a significant qty, it will be much easier to offload the pir heads without sending the market into a tailspin ...

k