what's the go with capo??, page-10

Jinla,

No one in their right mind would place a dummy/fake bid at a price thats at a premium to what the option should be trading at in an attempt to provide a support level.

With the SP at current levels (31c) and not taking into account that it might increase in the coming weeks the current option price should realistically be priced at about 1 - 2 cents so any order in the region of 4 - 6 cents are paying a premium of anywhere between 200% - 600%.

I think its more realistic to think that it is actually a genuine order and the buyer is happy to pay 35 cents in order to accumulate such a large order.

Unless the SP continued to decline over the next few days its actually a pretty clever stratergy, because accumulating 500,000 share on market would be quite difficult and could easily push the SP back over 35 cents which inturn could result in a holding with a higher overall average price.

Because of the share dilution when/if all options are exercised Mr Yue will be able to purchase another 3.3mill share if my maths are correct. Therefore purchasing the options at current levels will average his holding down considerably.

I might be way of the mark, but thats what I would be doing!!