hooter to cloudstreet Hi Cloudstreet.
The HDRWME exercise price is just under 72c ( was adjusted down from 75c for the rights entitlement ) the ratio is 1.92 ( was 2/1 before rights issue )
so they equal on friday 72c plus warrant price at 45c x 1.92 = 86.4c say (87c)
72c + 87c = $1.59 against the HDR fully paid close price of $1.58
The above maths altered slightly through the trading day at one stage it was exactly equal at worst there was a 3c variation.
The hdrwme are deep in the money and I think worth a punt for greater leverage its quite posible that we could see $2 before the end of june but highly unlikely to be under $1.50 at which point the hdrwme may have 10% of downside risk and still could convert in the money. Whereas a s/p of $2 could see upside gain of 30% - 50%.
Just my thoughts of course and im sure some of our warrant guru,s can shoot some holes in my maths.
Cheers Hoot
HDR
hardman resources limited
