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Phone call from PIO today, page-72

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1,118 Posts.

65

08/07/16

21:39

Post #: 18229527
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Originally posted by smit2100 ↑

I was only educated in public institutions and my Math and English are obviously reflective of my background . You appear to be far more skilled in the areas of Maths and English. Further to your post, please point out my "for the life of me", where my Maths and English and logic makes no sense at all.

$10000 in the CR gives me an ordinary share entitlement at 3,6 cents of say 277,778 ordinary shares. If I buy those shares on commsec at 3.4 cents (todays close) that costs me approximately 9466.35. (yes I allowed $21.90 for brokerage. So I saved $533.65 that I can go spend at Wesfarmers (prefer bunnings over coles), so the life of me why would I take up the offer.

BUT,
Perhaps I have made an ass of my self and read the CR document wrong. But I could of sworn that I read subject to a vote (done deal as I would see it, payback from the current management team for directly giving them some cash), I am entitled to a 1 to 3 three option offer. I am a mere public schooled mortal and don't have the opportunity or wears to buy PIO options. However that does interest me in part. Eg Lets assume the shares I was issued via the SPP hit 6.6 cents before the option expiry date.

In terms of the options, 1 for 3 gives me circa 92592 options to convert to ordinary shares. I would exercise them with a 6 cent exercise price if the price was 6.6 cents. That leaves me with a paper profit of $555.55. Lets assume with your distaste for Wesfarmers, you took your saving of 533.65 and invested that in a term deposit at 4.1%pa with Bankwest and I exercised the options at 6.6 cents after the SPP. You just equaled the $555.55 of paper profit I made on the options.

So as an investor who is willing to hold for say a year in a speculative stock, sorry but for the life of me, happy for you to value it so strongly at ZERO probability of obtaining an option or exercising it, but my probability is assessed a lot higher than yours. If on the remote chance I think its going to go over 6.6 cents, I'm valuing the option more than $533.65 in todays dollars if I drop 10k in the capital raising

If PIO ever gets above 6.6 cents going forward, I'm thinking that was a calculated and strategic use of $533.65 in terms of an "efficient capital allocation"

If I got my maths and English wrong, who gives a toss, I reckon there is $600 at best if your maths and English is correct and I screwed it all up based on dropping 10k via the CR. Thanks for motivating me to make a Bpay payment early next week.

Question. Assuming my maths and logic is acceptable. Why don't you think PIO can scale 6.6 cents anytime within the option expiry date. Are you suggesting PIO is not for me and I may as well take the $533.65 and not bother with the Bpay payment next week and try my hand at something that makes more sense such as "emotionally investing" the $533,65 on red at the casino on a roulette wheel.

PS Just an opposing licorice allsorts opposing view. I have my flame suit "respectfully" on.

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If I take your example, yes, you get circa 92,592 oppies (@6c) for participating in the SPP.

But if you're so confident that PIO will be above 6c in the future, why wouldn't just buy the additional 92,592 on market at 3.4c ($3,148 + SP gains), rather than forking out 6c ($5,555) at a later stage.

Participating in the SPP makes no sense whatsoever IMO.

PIO Price at posting: 3.4¢ Sentiment: None Disclosure: Not Held
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