Yes a real chance on expiring worthless. I certainly would not buy them as my only exposure to AOK. At current prices I think they are worth a shot when coupled with AOK ordinary shares.
Ie buy 1 AOK + 1 AOKO for 12 cents.
Chances of AOK being more than 12cents over the next few months = very high IMHO. So very low downside risk.
Chances of AOK being at least 25c = good IMHO if market is rational and drilling is remotely close to guidance. So a good chance of doubling you money.
Anything abiove 25c, AOKO gives alot of leverage to the upside for a very low initial outlay. Personally I'm confident that the shares will be worth 25c + by December so I'm happy to buy some AOKOs. But I thought the same 12 months ago and look where we are now .... so take what I say with caution and DYOR.
Also note that the AOKO sellers are selling quite big parcels. Either they bought up big a while ago and are now selling. Or they were large buyers in the original rights issue last year. If the latter is true, it may explain the heavy selling pressure of late.
AOK Price at posting:
9.4¢ Sentiment: Buy Disclosure: Held
