TMZ 0.00% 0.5¢ thomson resources limited

2.5c for TMZOA - To my way of thinking people are paying too...

  1. 226 Posts.
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    2.5c for TMZOA - To my way of thinking people are paying too much.
    Have sold my parcel.
    The heads have to be at 18c for your investment return to equal TMZ profit.

    eg. Buy $1,000 of TMZ @ current price 7c = 14,285 units.
    14,285 @ 18c = $2571 ie $1,571 profit. (157% profit on total outlay)

    Buy $1,000 of TMZOA @ 2.5c = 40,000 units.
    Add cost to convert 40,000 TMZOA x 11.5c = $4,600.
    Total cost = $5,600.
    40,000 @ 18c = $7,200 ie $1,600 profit. (28% on total outlay)
    Same $ profit but on greater outlay.

    If TMZ over 18c then TMZOA start making a larger profit but you still have to find those extra $$ to convert.
    Many punters will just trade their TMZOA rather than stumping up the extra conversion cash.
    Then what happens to the price gap? - I'm betting it will be more than 11.5c.

 
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