ARD HUGE GAINS... Would one of the experts here please explain??

You'll get an application form in the mail. Probably worth subscribing when you get the form as you'll probably be able to sell them on market for more than cost. That might be the reason for the increase of market volume for the ordinary shares - buyers are hoping they'll be in before the 'record date' and eligible to subscribe for the options against the new shares they're buying.

The price might quite likely crash back to the old range between 5 and 6c on the ex option entitlement date. The record date and ex entitlement date have yet be announced. However if you sell shares into this spike you might miss out on eligibility for the options.

Forget the 'reset incentive window' bullsh*t - its a positive in a small way, but neither here nor there. It's just an option, giving the holder the right but not the obligation to exercise (convert to a share) at any time up till a 30 month expiry date, or to sell as an option in the share market
 
southerncross said:
Options entitlement.
http://www.asx.com.au/asxpdf/20130305/pdf/42dg6qp1xsr812.pdf

For every two shares you own you get an option on another share for $0.01 cents which you can convert to another share for X price by X date or sell

Basically you can buy more shares for 20 cents at expiry date or for

17 cents within 6 months of issue of the options... I think.

Read the announcement
Click to expand...

Thanks for your reply, that is great...only i still don't get it.

Why are they selling shares for one cent plus twenty cents if they are worth more than that????

That is what i don't get. Are they trying to get more money or are they rewarding investors who get in early?
 
finicky said:
You'll get an application form in the mail. Probably worth subscribing when you get the form as you'll probably be able to sell them on market for more than cost. That might be the reason for the increase of market volume for the ordinary shares - buyers are hoping they'll be in before the 'record date' and eligible to subscribe for the options against the new shares they're buying.

The price might quite likely crash back to the old range between 5 and 6c on the ex option entitlement date. The record date and ex entitlement date have yet be announced. However if you sell shares into this spike you might miss out on eligibility for the options.

Forget the 'reset incentive window' bullsh*t - its a positive in a small way, but neither here nor there. It's just an option, giving the holder the right but not the obligation to exercise (convert to a share) at any time up till a 30 month expiry date, or to sell as an option in the share market
Click to expand...

Thanks for the reply... But won't everyone think the same? Will the stock now be overvalued???

And if i can get it for 8.5 cents, why would i buy for 20????

Sounds weird to a noob like me
 
Lower risk

pay 1c per option, if the shareprice exeeds 20c your options are in the money, and every cent above 20 is a multiple of your original cost
21 = 100% profit on cost of options
22 = 200% profit on cost of options

if it never gets over 20c you dont lose anything ecept your initial outlay

Its a really interesting way of raising capital
 
SilverSanchez said:
Lower risk

pay 1c per option, if the shareprice exeeds 20c your options are in the money, and every cent above 20 is a multiple of your original cost
21 = 100% profit on cost of options
22 = 200% profit on cost of options

if it never gets over 20c you dont lose anything ecept your initial outlay

Its a really interesting way of raising capital
Click to expand...

Light bulb flicks on...

Right, so they get 20% free money (the one cent fee for the options) bad on the average 5 cent price if it stays low, or they get loyalty for a long time if it goes up. True win-win.

Silversanches, i have you to thank for bringing ARD to my attention in the first place. Many thanks. I hope they go up as soon as they start geotting the shiny stuff out of the ground.

Are you taking them up on this offer??

Mark.
 
I sold mine (with a view to buy em back but then the market fell a quick 20% and the cash was stuck)
This is exactly what I wanted out of this company - a quick double... would have it now if i didnt sell. oh well


I would have halved my possition @10c after buying at 5c - that way all my remaining shares would have been free carry (no-cost)
If the expirey for the options was 12 months or more I would have taken all my allotment of options with no intention of coverting, but at selling at a profit

Exploration companies are not really buy and hold strategy for me,
My strategy for exploration is free carry no-cost basis.
 
Back up again to 10c..... wonder if it is time to halve my position or wonder if i will regret that in two years time when it is at even higher highs.... What to do what to do.

Shiny
 
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