Someone suggested it in reference to my request for a heads up on any undervalued potential leverage plays by acquiring options out of the money.
As I mentioned earlier last week I bought
PDYOB EVGO UCL - not an option but the heads are 0.008 MEO - no options but I like the story
I am also waiting for potentially cheaper entry prices on
CCCO CEOO GBZOA
EVGO stands out as my favourite - read JID's post in the EVG thread.
On current NPV calculations (my own to back of an envelope standards) I could argue a fair price for EVG at the moment of above 30c which would put the options at around 16c - 17c as against 3.5c now.
EVG will not pour its first gold until late 2011 around the option expiry date but by then of course the market will be discounting 2012 earnings into the price so that should not be an issue.
Based upon how things stand right now EVG is grossly undervalued for the current stage of its development.
I am also impressed with the efforts the management of EVG are taking to communicate on a regular basis with shareholders.
Unlike some companys I could mention whose management seem to regard shareholders as a pain in the .... er .... bottom.
I hope you all found that list of options useful but please bear in mind it is not my list - I just asked for some suggestions.
In the unlikely event that EVGO is abailable below my entrance price next week I will buy more otherwise I will be keeping my finger on the buy trigger for CCCO GBZOA and CEOO.
I am on the other side of the world to most of you so if anyone asks something and I don't reply it just means I have missed your message so don't take it personally.
