MagIndustries Corp MAAFF

What is the option price likely to be?

[Brainwave1]

Can anyone hazzard what the Complant option price is likely to be, as determined by the 3rd party, whose selection and ToR is yet to be defined or at least released? The price of latest financing is likely to set the trading range for some time to come, and if the option is priced as a combination of a premium on prevailing SP (say 25-50%) plus some calculation of NPV for the project, we could end up in the $.60-$.70 range. Maybe even close to a buck if we are lucky; hardly the kind of gains that the longs had wanted. Those who think differently let's hear it.

There are still missing parts of the puzzle with which to make sound judgement and management have not been forthcoming. We still don't know what the intention is with the latest financing. An earlier post noted that the funds raised make no difference to the cost of project financing so one has to assume that it is only an insurance policy to be able to keep moving if they are left hanging again by a Chinese state company, and so can't be pushed to the wall. The other unknown is what MAG has in its back pocket re the terms of the BNP financing, as that is the benchmark that MAG has been using so far in seeking something better via a larger partner. It could end up being some kind of poker game with the price determined between that level and the Complant option.

I've been around long enough that I'm still in the
.30s after movingin and out at various levels above and below where we are now, but thegains expected have been becoming thinner and thinner and the companyconstantly puts you in the position of needing to cost average down tostay ahead; a classic sucker's game.

There is probably money to be made at this level for those who want to dive in further, stomach the risk and ride it out til July. Otherwise the small retail investors have not been well served to date. But this kind of ride is what you get from penny stocks. Caveat Emptor.