Coming from the other way round on the issue of selling FPOs to buy Options, I have been selling options to pay for the conversion of the remaining options.
Now that there is a differential of more than 3 cents, this no longer makes sense. If I raise the cash elsewhere, I will be better off by 10k for a 3.5 difference or 20k for 4 cents. Put another way, I make a return of 15 or 30% on the new funds. It will mean selling every other share I hold and injecting a bit of dosh as well. But, post conversion I should be able to sell some fo the FPOs, hopefully even further ahead by then, buy back some of the stock I sold and return the external funds.
Even though I will temporarily have my eggs all in the TOX basket, I may be tempted to hold them there for a while before diversifying. I wouldn't be surprised by a shift from 14/15 to 19/20 as the options issue evaporates. A 30% bump up would mean around 100k to distribute, about 300k left over, completely free carried by the profits taken. I doubt it gets much better than this for mere mortals in the investing game.
Regards and fair weather to fellow holders.
Keith.
TOX Price at posting:
0.0¢ Sentiment: None Disclosure: Held
