when will oppies catchup with heads, page-6

Rob,

1)Oppies are expiring on the 30/11/2010 and you can convert them @0.12 cts

2)As you know GDN is drilling and let's say they have a good chance of success.

3)Most of the oppies out there at the moment cost their owner 0.01c and therefore not too many people who want to sell them cheaper as it's smelling Gas.

As soon as some signs come and tell the market that 0.12c will be reached ( I think at the end of this coming week if everything goes well )they will start to heat up as there will be people thinking that the heads are likely to reach say 20c which in that case naturally make the oppies worth 7c ( 20c{actual market price then} - 12c{price to exercice} - 1c { cost of most of them } = 7c. therefore people today can see a potential gain of x7.

They will probably keep following the heads with a difference of 13c all the way until expiry as long as they are in the money and that the Gas venture keeps going smoothly.

It's pretty easy to understand how the two works as long as you know what the company is up to, what is the expiry date and when they are in the money.

There is no real rule because you have a few factors to take on board to guess what they can be worth tomorrow. IMO and due to the actual stage of the drilling and the target price (12c) becoming very likely to be reach, they look very cheap and they could well be the best of the year.

Hope that helps.

Philduc