ASX Shares What's looking cheap on the ASX in 2018?

Best you make your own judgement on that.

Will point out some important dates / info:

• read their investor preso ( and other recent announcements )
  • key point here is first exports June 2019
• there are 333M unlisted 10c options that will expire on 31 July ( I personally want the share price to stay below 10c so these options expire ) my interpretation is that these (and the waiting for a funding solution) have been weighing down on the share price the last few months
• acquaint yourself with the information in the Appendix 3B as well as capital structure described in the prospectus for the SPP
• tranche 2 of capital raising shares will be issued within 5 days of general meeting on 27 June, SPP shares will also be on market around this time
• Other key dates are in the prospectus for the SPP (only open to existing shareholders):

Also read the terms of the debt / equity deal:

• Announcement

Latest price target is Hartleys at 19c in 12 months:

• https://www.batteryminerals.com/wp-content/uploads/2018/05/Hartleys-Research-Report-14May-2018.pdf

 

Like all graphite companies, lots of unknowns about flake sizes etc. If everything is as management says then great. Ps I got into the 6c placement two rounds ago and sold at 8-9c.

 

They've spent the later part of last year and earlier this year doing grade-control drilling. i.e. drill holes much closer together to have a more detailed understanding of the resource. They've got a fairly good understanding of the size distribution that will come out of the ground.

 

Just following up on this. VLA will suspend trading this afternoon. Implementation date for the buy out is 20th June.

Hindsight is a wonderful thing. I should have bought more when they were at 67c

Oh well, it was a speculative purchase, so happy with the small ($) profit I made.

Cheers,
Inertia.

 

NUH in trading halt until they make an announcement or commencement of trading on Friday, whichever comes first...

https://www.asx.com.au/asxpdf/20180606/pdf/43vl3y1jdjsqx6.pdf

Cheers,
Inertia

 

Anyone with a suggestion as to what this may be about?

 

Page 2 - a capital raising.

 

Just wondering what everyone thinks about a new asx listing for online business lender that will trade under Prospa code/P G L..IMHO..

 

Today's announcement re: BAT

Market Announcement
8 June 2018

Trading Halt
Description
The securities of
Battery Minerals Limited
(the ‘Company’) will be
placed in trading halt
at the request of the
Company, pending the release of an announcement by the
Company
.
Unless ASX decides otherwise,
the securities will remain in trading halt
until the earlier of the commencement of normal trading on
Wednesday,13 June 2018
or when the announcement is released to the market

 

Hopefully a better debt solution or at a minimum the funding gap resolved. Either way something that moves it forward.

NB - Just want it to stay below 10c until expiry of unlisted 10c options on 31 July.

 

My cost basis is still around 10c, and I'm still planning to hold. So we'll see what the announcement does - was planning to try and average down a bit.

Cheers,
Inertia.

 

It is also interesting to see the announcement regarding the capital raising by NUH, and where it came from...



Cheers,
Inertia

 

Thanks. Good to note.

 

Hi @wombat777, could you please explain more on the options (in general)?

My assumptions are:
1. If you do not have the options to purchase, then it makes sense you want the current share price to stay below the options price so you can buy more below the options. When other investors executed their options at later date, then it will increase the share price.
2. If you're an existing shareholders and likely to have the options to purchase, then does the current share price even relevant to wether it's above/below the option price? I thought the only matter is if the current share price stay above your buy price, not? so you can take profits.

 

Share prices are generally driven as sentiment related to future potential of earnings as well of value of assets held by the company. For assumption #1 when all the options are executed it will (generally speaking) mean a lower share price because the earnings ( and assets ) of the company are spread between more people after all the options are converted.

For assumption #2 if the share price (e.g. hypothetically $0.50 ) is below the option exercise price ( e.g. hypothetically $0.53 ) then conversion of the options at this point in time would be at a loss ( if you sold the resulting shares after converting from options, your loss would be $0.03 per share ). If the share price goes above the options exercise price then people may exercise their options ( but the capital outlay involved in paying the exercise price may delay them from doing it too close to the expiry date ).

Leverage Hypothetical Scenario

Important - before investing in any company ( and particularly if considering investing in options ), make sure you do your own research on company fundamentals ( but also see note below on Appendix 3B )

The main advantages of buying options are leverage (particularly for smallcap companies). You can effectively secure shares for a lower initial capital outlay.

Take the following hypothetical example. You have $1000: you can buy shares XYZ at $0.10 or options XYZO at $0.01 ( exercisable for $0.03 )

Buying $1000 of XYZ you would own 10,000 XYZ
Buying $1000 of XYZO you would own 100,000 XYZO

Moving forward 2 years, assume the company has grown / developed and is now generating cashflow

• if share price was $0.50 if you had bought XYZ you would have an asset worth $5,000
• if share price was $0.50 then XYZO would nominally be at approximately $0.48 so your asset would be worth 100,000 x $0.48 = $48,000 ( however to convert these to full shares you would need to pay $0.03 x 100,000 = $3,000 )

If the company started paying dividends and you only held XYZO then you would not be paid dividends ( you would need to pay $3,000 to convert them to shares first ).

General Issues or Risks with Options

• if you hold options, you do not receive dividends
• options generally have much lower liquidity than heads ( volumes are lower and there are fewer buyers - often this is just awareness )
• if you intend to exercise then you need to do so several days before the expiry date
• I'm not an accountant, but I understand that you reset the CGT clock when you exercise them to buy shares ( options and heads are two distinct assets )
• if a takeover offer occurs, you will need to exercise the options ( otherwise they could become worthless )
• plan out when you are intending to exercise ( there can be a rush of people selling a portion of their options before the expiry date to fund the exercise cost )
• if you only hold options ( don't hold shares ) then you don't have voting rights

Unlisted Options

Some companies issue unlisted options or performance rights/options. This may not be listed on the ASX but can also lead to future dilution of share prices.

Important - Appendix 3B

Companies will issue an Appendix 3B as an announcement whenever there is a change to the capital structure of a company ( e.g. as a result of someone exercising their options or because of a capital raise ). Make sure that you familiarise yourself with reading / interpreting information in the Appendix 3B ( particularly if you decide to invest in micro and small cap companies ).

 

100%, The Valence - Uley Graphite project in SA is a painful reminder for me. No Cookies | The Advertiser

 

Superb post @wombat777 as always. Very detailed information about options, I learned a lot from just that one post. Thanks!

 

Looking cheap was thinking a trade

 

*sigh* Good thing I don't put tons of money into the speculation stocks. BAT released their announcement and took a hit this morning


https://www.asx.com.au/asxpdf/20180613/pdf/43vqs535gcj9gd.pdf
They lost some major funding which will delay first shipment by at least 3 months (pushing back to at the earliest Sept 2019)

Cheers,
Inertia

 

When you look at the trade volumes,50 buyers for 12,270,429 units==123 sellers for 18,646,114 units and there are several orders in line for above 1-mill ,all one can do is observe the data,and make your assumptions on what the end process will be..imho..