RISK REWARD 13 AUGUST 2008
Looking at 1. risk and 2. reward in a 100,000 share investment in BIUI. What would be risk money and what would be reward money?
Remember, this is only opinion and it is like your rear end, everyone has one. But I thought this out before I accumulated.
1. Risk. Newcastle has loaned money and will push a takeover bid with their options at .20 cents U.s. Logical, they want to make a billion dollars with their 11 million dollar investment. They got lucky and the SP dropped in a down market and they got the options to buy out in a 90 day time frame. At .20 cents, That is crazy! For little investors yes, for the big boys, not! That is how they rip us off.
So, say you bought 100,000 shares of BIUI (You could also drop it down to 10,000 shares by dividing by 10) at between .21 cents and .25 cents. Say .25 cents. On an investment of $25,000 in a down market, you would have a risk of losing .05 cents on each share if the buyback price was at .20 cents after newcastle attacked with their options. But Newcastle would try to go around a class action suit by offering a buyback price higher than .20 and closer to .25 cents. So, in effect, if you bought 100,000 shares at a price of .25 cents and Newcastle attackers will try to buy you out at .25 cent U.S. So, no loss, no gain, except for cost of buying BIUI. NOT MUCH OF A RISK. YOU GET ALL YOUR MONEY BACK!
2. Reward. At .60 cents, if the Share Price (SP) hits this number, Newcastle must raise their offer, regardless of the options because then they must then be changed according to the SP. Because it is over 200% of the old options price of .20 cents U.S. (Written in the options contract) Anything above .25 cents is profit for you and of course over .60 cents, is a great win for your investment. Good news on the quarter results could bring the share price up to 2 or 3 dollars and destroy the options from Newcastle. And a 25.000 dollar investment would be worth 300,000 dollars.
Risk. Buy until .25 cents and risk nothing.
Reward. Buy until .25 cents and make up to 275,000 dollars on a 25,000 dollar investment. Looks good to me!
Any comments? Any input? Insults are also welcome. My back is really large after 26 Years in the U.S. Army Infantry. Anyone here know about humping? Hint, this is not sex! oldmanbadman rdncoic
Remember, it is your money, and I cannot make money if you lose or make money on my investment advice. Guys and Gals, I only share my ideas on a global basis. I may have a good investment idea or not. But it all depends on how the markets move and Investor Sentiment. Good luck on your investments. oldmanbadman rdncoix
