These options are very attractive to me at current levels, once the heads get to much higher levels however, that attraction gradually wanes and I will likely shift some of that tied up capital back to heads...when the changeover difference is not so great and daily swings in the heads equate to the exercise price.
In the past, I have managed to shift from options to heads in certain issues, yet actually buy back the heads cheaper than I sold the options. Whos really knows though...if all comes off as we hope, holding them and actually exercising at a time of my choosing also has it;s attraction.
Importantly, if I am thinking this way clearly others will too, which essentially creates the environment for current options trading premium.
I have spent some serious time on this stock, researching beyond normal stock parameters...I can say was initially devestated by the effective relinquishment of Catabola, but on reflection understand that to give up such a golden prospect, CVI must have been given a pretty big carrot?
They will of course get back contolling interest in Catabola, I suspect on the back of a significantly higher share price (after the carrot gets presented to the market)...and they also get the "copper province" and numerous gold resources back with it...so I guess it was not all bad.
The last thing I would do is second guess Smyth.
Of all people macrae12, I think you would recognise I have been around spec's long enough to have know one should always expect the unexpected...but the way this thing is panning out, against a backdrop of gradual market awareness rather than over-hyped promotion (all of which has been going on in the background for over 18 months now), I feel quite comfortable to say CVI is one of the best placed, undervalued, over-qualified stocks on the exchange.
The workings of Smyth here are simply brilliant...and the crew gathered equal if not better than those in stocks amoungst the billion dollar league!
So much going on right now for CVI...and all so well executed.
Cachoeiras de Binga, with a 7.1mt @ 2.14% Cu "resource" and some 59mt+ inferred resource at 2.14% Cu...alone is a company maker...we have 32% of this and will end up with over 50%. This is just one project in a "province". Then of course Catabola, which I suspect will be equally impressive, but with significant gold "surprises" in the mix...yet another company maker.
Significantly, these are not even core projects.
I do not advise people, but I can say I would not like to see you sell your latest entry too early. There will be games, but the play is accumulation here, a view on which I have absolutely no doubts. We are in my opinion on the verge of a very very significant rerating for CVI...if all goes to plan...and a time when the current "depth" will shift from "small cap spec" appearance to "mid cap oiler on the move" parameters.
The biggest difference will be twofold; firstly significantly lower volumes and associated trade sizes trading each day and; secondly, minimum upward resistance for tens of cents at a time.
People talk of the options being expensive...I still think they are cheap.
Current depth in the heads is not real and entirely manufactured in my view. The compressed "difference" between the heads and options is a direct result of this "fiddling" of the head stock...both to facilitate a more attractive recent placement price and to generate "retail flush" via manufactured churn and depth stacking (read institutionalisation).
Everything in my bones says something is coming; the trading patterns and games; the recent increase in cross-trades; the after market match-up "swaps"; the recent "fortitude deal"; the options premium; the shape of the charts; the placements; the shifting fundamentals...and of course today's performance against a backdrop of wider carnage on the markets.
I really can feel one of those "specials" ahead of us...just not sure exactly when
I guess we will all know afterwards though.
Cheers!
CVI Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
