An alternative to margin lending would be to buy the options for about 29 cents with 8 months to go. The LVR is about 40% borrowing, equity 60% (ie. 48-29/48 =19/48=39.58% or 20/48 which is 42% approx.). The exercise price is 20 cents it August 2003.
There are no margin calls on the options and no interest (you are just paying a 1 cent premium though). In August a person coould exercise the options and then borrow against the shares. Net effect is an interest saving, no set up fees and no margin calls until then.
Problem is they are less thinly traded than the ordinary shares.
noip
BPC Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Not Held
