Anyone in ARD or ARDO have a view on the future of the options. The stock is currently trading at 22.5 cents. The options expiry is June 2010 and last traded at 2 cents with an exercise price of 20c (in the money).
So, with the in speccie distribution record date being 1st April (and assuming 5 days to get the cheque processed), that pretty much puts us at this Friday, 25th March to exercise options and be entitle to the distribution. For this, you will have paid your option price plus 20 cents, but get freebies if the deal goes through.
If you hang onto your options, i suspect the share price may pull back to 16c roughly with an options exercise price of approx 17.6c as indicated by Argent themselves. So, not in the money.
That leaves 3 months for Argent to accelerate past 17.6 cents once again to make the options worth hanging onto.
The money in the bank approach is to exercise options Thu/Fri and lock in before the record date of 1st April for your free shares. The riskier approach with potential exponential gains or a 100% loss is to hang onto the options and expect further anns which will give the share price a kick. Personally, i think these anns will occur and our days in the teens will be numbered.
Anyway have any views on this.
ARD Price at posting:
22.5¢ Sentiment: Hold Disclosure: Held
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