risk/reward 5:1

Let's assume that the deal with Posco falls through and we have to start the process again. The share price could retrace to the pre-announcement level of around 13 cents.

At today's price therefore Gunson could fall another 3 cents.

What is the upside?

If the deal is done then the share price should be in excess of 30 cents and for rounding purposes let's assume 31 cents.

So we have an upside of 31 cents (+15c) and a downside of 13 cents (-3c) and which is 5:1 ratio.

In my book these are great odds, whether it happens in August or later these are the sorts of low risk, high reward opportunities that don't come along all that often.