Re: AZR Aztec Resources- Little guy going Up?
Options expiry, seem to be the major issue at the moment re dilution. I've been watching BSG and they adjusted their sp to reflect the exercise of options (look at pricing on Bigcharts.com (old pricing) and compare to current pricing (eg CommSec- adjusted price) OR see the Bolnisi thread. Basically high adjusted from 60c+ to 56c but obviously the dilutory effect varies according to the number exercised, the sp how far they're in the money etc but that's just my guess. So options about 30% more shares will be issued if all AZROA are converted (which means AZROA holders have to have the dough to pay for the AZR shares). The higher AZR goes the less the effect for me by options on sp as my profits will be preserved.
As for getting out of this trade- not for me, I want my profits to run- 18c for shares like this is a psychological price that is common imo, sounds silly but with the co on the verge of something big it should range to low to mid 20s. For you Croc, you've made a heap on this one so I can understand you wanting to cash in without risking more. Perhaps a reentry with a smaller position size if I were you, but this is not advice as I have a habit of being wrong (ie didn't buy in at 10c! went for short term profits in AZROA instead). Another strategy is to take your capital out and leave the profits to run as you have doubled your money. All depends on your individual plan. Please don't be misled by me views if you have another plan- I know it's sometimes hard to exit.
Recent rise in volume and strong close bodes well for AZR, let's see what the annoucement is, if there is one. I'm waiting on the final rounds of the iron ore negotiations to see how much they hike prices by (30%+). I expect Australia will ask for a higher hike than the others once it's our turn.