I understand your thinking but the takeup of options actually at that time puts negative pressure on the share price. So the day after the 100% increase is that actually your $1.15 is $1.125. I, as a latecomer, would like to see the conversions as it locks in $1.10 cash and spreads overheads over a larger pool. However, if it trades around $1.12 or $1.15 I may well just take the profit.
I am invested in another micro-cap LIC and in fact they did very well adding 12% in the first year then paid 3c and paid tax so had a NTA of around $1.06 and traded at that - then came the options conversion taking that back to $1.03 its now struggling to hold $1.00 because with 100% more cash they suddenly could not place the funds as quickly and with cash earning nothing the next 12 months didn't look as flash as the first so they trade and still do trade at a discount to NAV which is around $1.12 before tax again.
URB Price at posting:
$1.00 Sentiment: None Disclosure: Held
