“If you buy the 'April 17' options now, what price do you end up paying for them if you keep them LT? thanks”
The exercise price for the options is 6c per option and the expiry date is April 2017.
Although we can probably attribute increasing interest in buying the options CGPOA on market due to the great price appreciation we have seen so far on the heads, It is likely also because many are starting to realize how favourable the terms of the options are with a strike price that is fairly low based on how we have started performing and where we could end up and how far away the exercise date is for expiry; another 4 whole years until 2017! I should note that there is a lot to be weary of when it comes to options and I have had some absolute nightmares with some in other companies in the past where I’ve converted oppies and then there were processing delays from the brokerage service and the new shares didn’t appear on my screen quickly enough to sell on high points (so that is something to be mindful of if you’re still here in 2017), but overall the beauty of options is that you can ride the price movements of a stock at much lower cost of the ownership of the fully paid shares and obviously the potential for leverage or increased profit is far greater. This is especially true of the companies whose heads’ prices keep running! It does carry with it a lot more risk than holding the normal stock though. If the options price surpasses the strike price BEFORE the date of expiry (as I very much expect it will here) say in November 2013, There is still no obligation for you to convert or buy ordinary shares at a set dollar amount and you only need to worry about this when the date of expiry edges closer. Lucky for us 2017 isn’t for another 4 years time.
The following are some of the quite favourable things that are working FOR us at the moment: * Market conditions – bullish recently * Revenue nearing for the company – income about to come in * Oppies expiry – not for another 4 years so lower risk there in that regard * Oppies conversion – Don’t need to unless you nominate to prior to 2017 * Unique product being launched in only a few weeks now – Likely to bring more interest * Biotech investment seminars – next week, in addition to the mid cap conference today 23 Oct and the broker presentations last month which very clearly did it’s job in selling the story to those who have deep pockets * Fantastic management team
Those who are worried about cash position, always good to keep reviewing it but every company can always do with more cash (as can all investors!) but I think 1.5mil is sufficient for the moment and keep in mind in the presentation released to market today it stated that cash burn is only $57k/pm approximately. So that is not really a very high amount so i think the board and those close to the company are making sure our coin is spent wisely and there is very minimal wasteful spending. I think they are spending our money wisely and prudently. Also remember that similar to other stock runners that go up higher that once/ if the exercise price for the options has surpassed the conversion of oppies into shares by those who choose to do so will ALSO provide the company with additional cash and wealth to draw on. That is significant and just something to remember.
I am hoping that a cornerstone investor is becoming interested in the company at the moment or will soon be interested because once/if they show their hand it could provide a solid platform for additional growth ontop of what we are seeing at the moment. We know what happened to OSL ;) Geez all you gotta do to grow your wealth these days is follow Martin Rogers LOL! And for those who say traders are the ones pushing the price up: don’t really care who is doing it or why lol, as long as interest is maintained and we keep seeing positive action :)
Like said previously I know for a fact that many oppies holders are holding their stock in tight hands until much later on into the company’s growth story, so this may help in additional movements. Might be Mr State the obvious in the post but it’s all about Supply vs Demand. Not enough supply vs increasing demand then it goes up.. and vise versa
And well done to Antonswig, a much earlier holder of this stock than me and a larger position that me also. Thanks for supporting the company through all the past years and well done.
Hope all shareholders reap some handsome rewards. All the best.
SW.
CGP Price at posting:
7.1¢ Sentiment: Buy Disclosure: Held
