AJL 0.00% 0.8¢ aj lucas group limited

sale of 25% interest in bowland prospect, page-41

  1. 33 Posts.
    So where are we going to go from here.

    Pretty new to all this so the following could be complete rubbish but bare with me:

    Current value = $229.44M / $1.6 = 143.4M shares
    Credit Raising = $148.8M / $1.2 = 124M shares

    After credit raising at current price
    Total Value = $378.24M / 267.4M shares = $1.41 / share

    Over the next few days some new players will try and get in on this and get the benefit of the credit raising option.

    Say price increases to $2.00 and you buy 10000 shares and then capitalise on the credit raising

    $2.00 x 10000 = $20,000
    10000 / 1.25 = 8000 x $1.2 = $9,600

    Total outlay = $29,600 for 18000 shares = $1.64 / share

    Assuming price will drop after Wednesday again back down to about say $1.69 (1.41 + 20%) $1.64 / share still looks like a good price. 20% is just a pure guess, perhaps it's be higher or lower.


    For those currently holding based on the above scenario.
    Say 10,000 shares increase to value of $20,000 and you don't take up the option, you end up back at $1.64 / share. Would feel a bit like being left behind even after all the good news

    Take up the option and you end up with
    10000 x $1.64 = $16,400
    8000 x $1.2 = $9,600

    Equals average share price of $1.44 / share
    14% better off than not taking the option


    After all that dribble I thinking we'll see $2 plus this coming few days and then a drop over the medium term once the credit rating is complete

 
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