CXY - Cougar Energy

[Dukey]

Can someone please explain to me what is the go with the 5-6c options (CXYO) has at present? Can anyone just buy them? What happens when you buy them, can you convert say 60000 options @5c and turn those into 60000 shares for a purchase at 0.05c?

Cheers LM

CXYO (5 cents exercise date Dec 31 2008) are company issued options (as opposed to exchange traded options .... Here's a spiel on COMPANY ISSUED OPTIONS from the asx website here: http://www.asx.com.au/investor/options/how/library/company_options_versus_etos.htm
)

& YES - anyone can buy or sell them just like shares.... up to about 5 days before the exercise date - when they stop trading on the asx.

If you still have the options nearing the time of exercise date you must decide if it's worthwhile paying the 5c to exercise each option.... if you pay the exercise price you will get 1 fully paid ordinary share (CXY) for each option converted. (& the exercise price is payed directly to the company - not via the ASX).
If the options aren't converted they lapse and as far as I know they disappear into the void where dead options go .... never to be seen again.... BUT this would only be the case if the share has tanked to something below the exercise price (or if you expect it will).

Essentially I think of it as buying the shares in two installments... Paying market price now, and paying the exercise price later.

Example: (bear in mind I'm no gun trader so best to double check this stuff!!! )
I bought some CXYO maybe two weeks back -
Now generally the options trading price will track below the 'heads' (CXY) by roughly the amount of the exercise (or strike) price, - in this case 5c, or a little lower. CXYO seems to be tracking about 6c below CXY currently but it varies through the day.

At that time CXYO were about 7c ; CXY were about 12.5c

so.... assuming $1000 to invest : I could buy 14285 CXYO or 8000 CXY... this is where the options give you leverage.

Todays close was CXYO = 18c ; CXY = 24c
If I had sold everything today,
my profit on CXYO would be 157% (x $1k investment = 1570$ profit)
My profit on CXY would have been 92% (x $1k = 920$ profit).

so far I'm well ahead by going for the options this time... doesn't always work so well... cause the leverage works against you if the share price tanks. ... so watch out.


Well - hope that helps LM - certainly helped me get it all clear in my own head!!!!
Please correct me anyone - if I've messed up somewhere.

good luck. - dukey

 

[desolator]

jesus christ.. every time cxy trys to get some momentum behind the stock and things look peachy they announce a trading halt.. wouldnt it be better to let the SP tank a lil bit before this? i mean surely.. if they are issueing more shares it better be at minimun 20c.. otherwise history may repeat itself and see a backflip in the SP ? thoughts?

The Directors of Cougar Energy Limited (ASX Code: CXY) seek a trading halt to the company’s listed securities.
Reason for trading halt: The Company is currently negotiating a long term financing arrangement to develop the company’s UCG assets.
How long is trading halt to last: Until before commencement of trading on Tuesday 10th June 2008 (given that Monday 9th June is a national public holiday).
Event to end trading halt: The announcement to market as indicated above.
Granting of trading halt: We are not aware of any reason why the trading halt should not be granted.
Other information: There is no other information that the Company can advise the market at this time regarding the request for a trading halt.
For Further information, please contact:
Dr Len Walker, Managing Director on 0419 587 396

 

[blehgg]

The securities of Cougar Energy Limited (the “Company”) will be placed in pre-open atthe request of the Company, pending the release of an announcement by the Company. Unless ASX decides otherwise, the securities will remain in pre-open until the earlier of the commencement of normal trading on Tuesday, 10 June 2008 or when the announcement is released to the market.

Interesting

Good luck all

 

[mick2006]

the funding agreement for development of CXY's UCG assets is going to be a massive boost for the company, it will be very interesting to see what form the agreement takes.

with plenty of multi-national corporations currently in Australia stalking any decent CSG,UCG play hopefully CXY has attracted one of the big boys.

 

[james99]

Mick, if good terms, then I agree. Interestingly, the previous halt referred to "equity" raising, and this one financing, which perhaps suggested that there will be limited dilution only, in which case it will be very beneficial indeed. At the halt the highest buy offer is at .32 (50,000 for 1 buyer) and then .30 (87,100 for 6 buyers). The total buy orders for .25 and above at 1,346,576 shares. Depending on the sells that still exist on Tuesday, it could open very high indeed.

I disclose holdings.

 

[LittleMak]

CXYO (5 cents exercise date Dec 31 2008) are company issued options (as opposed to exchange traded options .... Here's a spiel on COMPANY ISSUED OPTIONS from the asx website here: http://www.asx.com.au/investor/options/how/library/company_options_versus_etos.htm
)

& YES - anyone can buy or sell them just like shares.... up to about 5 days before the exercise date - when they stop trading on the asx.

If you still have the options nearing the time of exercise date you must decide if it's worthwhile paying the 5c to exercise each option.... if you pay the exercise price you will get 1 fully paid ordinary share (CXY) for each option converted. (& the exercise price is payed directly to the company - not via the ASX).
If the options aren't converted they lapse and as far as I know they disappear into the void where dead options go .... never to be seen again.... BUT this would only be the case if the share has tanked to something below the exercise price (or if you expect it will).

Essentially I think of it as buying the shares in two installments... Paying market price now, and paying the exercise price later.

Example: (bear in mind I'm no gun trader so best to double check this stuff!!! )
I bought some CXYO maybe two weeks back -
Now generally the options trading price will track below the 'heads' (CXY) by roughly the amount of the exercise (or strike) price, - in this case 5c, or a little lower. CXYO seems to be tracking about 6c below CXY currently but it varies through the day.

At that time CXYO were about 7c ; CXY were about 12.5c

so.... assuming $1000 to invest : I could buy 14285 CXYO or 8000 CXY... this is where the options give you leverage.

Todays close was CXYO = 18c ; CXY = 24c
If I had sold everything today,
my profit on CXYO would be 157% (x $1k investment = 1570$ profit)
My profit on CXY would have been 92% (x $1k = 920$ profit).

so far I'm well ahead by going for the options this time... doesn't always work so well... cause the leverage works against you if the share price tanks. ... so watch out.


Well - hope that helps LM - certainly helped me get it all clear in my own head!!!!
Please correct me anyone - if I've messed up somewhere.

good luck. - dukey

Wow.... thanks for the info and the link Dukey!

I've got some reading to do.

Cheers

LM

 

[redback]

I must make a comment here, something stinks real bad here, Len and his old financier mate from the PCE days (largest shareholder after Len) are obviously in bed together, firstly 50m at 14c then only a week later this trading halt, ASIC should be looking very closely at this pair, this is disgraceful insider conduct of the worst order, I will see what ASIC make of this rort. So are they going to try a MEE?, with a $22million raising?, I personally cannot see a reputable company coming in here, not with this obvious cronyism going on behind the scenes, these people should be investigated forthwith, with only about 60-75 million tonnes still non jorc this behaviour is suspect as, this is not going to interest any major, I may be wrong, but currently the behaviour shown by the people involved stinks to high heaven of insider greed.

 

[redback]

I must make a comment here, something stinks real bad here, Len and his old financier mate from the PCE days (largest shareholder after Len) are obviously in bed together, firstly 50m at 14c then only a week later this trading halt, ASIC should be looking very closely at this pair, this is disgraceful insider conduct of the worst order, I will see what ASIC make of this rort. So are they going to try a MEE?, with a $22million raising?, I personally cannot see a reputable company coming in here, not with this obvious cronyism going on behind the scenes, these people should be investigated forthwith, with only about 60-75 million tonnes still non jorc this behaviour is suspect as, this is not going to interest any major, I may be wrong, but currently the behaviour shown by the people involved stinks to high heaven of insider greed.

Complaint lodged with the toothless tigers, nothing of course will come of it of course, but protest lodged anyway

 

[james99]

Red: Just a few things:

1. I am not sure the basis of your reserves figure. CXY has already announced it has not yet obtained but is commissioning a JORC figure. Surely that should be awaited.

2. it has constantly maintained that it has sufficient resources for the current project. It would be a bold move if it did not or could not locate that.

3. It, as long ago as Sept. last year, announced a JV with VPE re an exploration area with very substantial coal potential. It also has access to reserves in its overseas locations.

See link re VPE : http://www.cougarenergy.com.au/PDF/10Sept_314gd4m5qqpbk0.pdf

4. Re the alleged insider trading etc:

(a) if you have evidence, then I am sure the ASX / Regulatory body will investigate and act on it. I invite you to post it, so we are clear what you are talking about.

(b) merely prefering to obtain finance from business associates and even friends is not unlawful. Indeed, many companies start out that way, and continue to raise funds in that manner (perhaps the most benign method of which is employee options).

So long as the funding cost is not disproportionate to the project, obtaining it seems sensible.

I disclose holdings. Can you disclose whether you have or over the past 2 weeks have had any CFD / positions / holdings etc in CXY.

NB: I welcome your posts; but simply wish to clarify the factual basis and your ongoing interest in this company that you clearly do not like. ;-)

 

[Dukey]

Wow.... thanks for the info and the link Dukey!

I've got some reading to do.

Cheers

LM

No probs LM. glad to be of assistance.

........ don't forget the bit about the downside risks with options - if the regular shares start tanking... has happened to me ... can happen quickly esp. if they trade on low volumes - you can run out of buyers pretty quick!
CXY/CXYO going in the right direction so far...

... despite whatever our spidery mate is on about

- dukey.

 

[cordelia]

James, I hold quite a largish amount--firstly from 3.4c, which went to 15c (I bailed just after our great friend here decided to dump them too ), which sent this into freefall, I am not impressed one little bit with this persons involvement here (Melbourne Capital), these scalpers, and poor ol Len's dependancy on them are no recommendation at all, these people are obviously taking full advantage of the current bubble in coal stocks, I have seen these people operating, just take care--60-80 million tonnes of 150m deep coal isn't feasible, neither is a 40mgw power station, I would suggest that this is being seriously manipulated for the profit of a few, beware these people, I have seen all this before, and the people are still the same old. I await the heat of the intense retaliatory flames which will surely follow this simple expurgee

Redback...did anyone pin you down and force you to buy or sell these shares? All the information you need to base your engagement with the stockmarket upon, is freely available, if you take the time and effort to look....There is no conspiracy....

The trouble is people think they can just barge into an area they have no knowledge of. The n they get annoyed when it doesn't go their way.
Would you venture into a game park without knowing how to deal with the wildlife?

You obviously feel disgruntled with this stock so why not approach the management with your complaints...

Every trade involves a decision..who's is it

 

[doctorj]

I personally cannot see a reputable company coming in here, not with this obvious cronyism going on behind the scenes

Isn't 'cronyism' the lifeblood of the small explorer? I once was involved with the IPO of a small explorer. Of all the money they raised (through a very reputable broker I might add), the only money they 'raised' that didn't come from friends/family/themselves/brokers/brokers mates was a tiny parcel of 10,000 shares.... that was taken by the lady that worked for the company they were outsourcing their book keeping too. It's not often a result of knowing any more than Joe Average, but merely trusting the skills of people you know.

Anyway, lets keep this about CXY. Redback, I think it's more than fair your fairly lightweight claims were politely challenged and the number of times you have been 'in and out' is completely irrelevent.

I too would be very interested if you have any further basis for your comments.

 

[LittleMak]

Optimism: From my research CXY have enormous potential with Lens experience and the JV's O/S and Victoria Aus etc. If this trading halt is the start of a great JV with a huge respectable Company then I can't wait for trading to resume on tuesday.

Pessimism: If nothing substancial or long term comes of this again, Then one would have to question CXY managements ability to progress this company for long term success. The management and expertise of LNC and MEE are built for long term success. One would think with Len's experience that he should have the best team and this company 'CXY' where LNC is at present or further or even on par with MEE at the moment.

Soo many questions? Especially when one of the largest shareholders in CXY (Angus Edgar) is also an Executive Director of Melb Capital and is involved in a business(Transol) with CXy's Andrew Metcalfe.

http://www.cougarenergy.com.au/PDF/9July_313bz45ls2jwd4.pdf
http://www.transolcorp.com.au/4.html


Today though I remain optimistic and A holder of CXY.

 

[james99]

Well Little. I think that Tuesday will (subject to Monday on the DOW) be a good day. Although the DOW is down substantially, oil and energy cos have held up and advanced on the TSX, which Au. resource stocks tend to mirror.

When oil when to $136 bl, cxy, mpo, mee, blk and glx spiked, it is now $139, and furthermore there has been positive publicity in Au re gas. Gas in US now $12+ and it is predicted that Au will trend in that direction.

Cxy is currently 24, with a cap of 105 mil, Mee is 230 cap, so Cxy can double and still not match Mee, which will (IMO) rise on Tuesday anyway. Smaller cos, eg Blk with cap of about 16 mil, can increase 6 times to reach Cxy and 14 to reach Mee.

In terms of investor sentiment, the trend is up and these will, IMO, also be dragged up by AOE, BPT etc over time. The turning point may be if some cannot bring their projects to fruition, but there are many months before that possibility comes to bear (ie before actual construction begins. That, IMO, will be a time of risk).

Mee went about about 2.5 times in the few weeks following its financing announcment (from 32 to 80); an equivalent with Cxy (now 24) would be to 60.

I disclose holdings.

 

[avaramo]

Well Little. I think that Tuesday will (subject to Monday on the DOW) be a good day. Although the DOW is down substantially, oil and energy cos have held up and advanced on the TSX, which Au. resource stocks tend to mirror.

When oil when to $136 bl, cxy, mpo, mee, blk and glx spiked, it is now $139, and furthermore there has been positive publicity in Au re gas. Gas in US now $12+ and it is predicted that Au will trend in that direction.

Cxy is currently 24, with a cap of 105 mil, Mee is 230 cap, so Cxy can double and still not match Mee, which will (IMO) rise on Tuesday anyway. Smaller cos, eg Blk with cap of about 16 mil, can increase 6 times to reach Cxy and 14 to reach Mee.

In terms of investor sentiment, the trend is up and these will, IMO, also be dragged up by AOE, BPT etc over time. The turning point may be if some cannot bring their projects to fruition, but there are many months before that possibility comes to bear (ie before actual construction begins. That, IMO, will be a time of risk).

Mee went about about 2.5 times in the few weeks following its financing announcment (from 32 to 80); an equivalent with Cxy (now 24) would be to 60.

I disclose holdings.

Based on your theory, all these companies should or could have the same market cap. So why not include LNC in your theory with a market cap of $1.4Billion?

 

[ands]

Well a huge rise in the share price the day before the Trading Halt announcement must count for something...

 

[james99]

Based on your theory, all these companies should or could have the same market cap. So why not include LNC in your theory with a market cap of $1.4Billion?

Avaramo: I think that if they all progress to the same level then, subject to resources, market sentiment etc they can be in a similar cap category. However, I think LNC (and also AOE and BPT and some others) are really so far advanced and have other strings to their bow compared to Mee, Cxy, Blk, Glx, etc that it would be a highly unrealistic comparision at this stage.

We have, I think, some 15 under 250 mil cos in the UGC, CBM, CTL sector, and almost all do not produce and there are no UGC plants. Some may never do so. Therefore market sentiment etc is a major factor in price.

And, as a person who holds and dips into Mee, Cxy, Mpo, Aoe and Blk (amongst others) it would be great if they all made the LNC or even AOE level, but the under 250 mil's need quite a bit of progress on the ground before then IMO.

Anyway, I shall end with another generally positive gas link (and hope for Tuesday):

http://business.smh.com.au/gas-bonanza-20080606-2mzw.html?page=fullpage#contentSwap2

 

[james99]

Great CXY publicity: UGC conference in Houston, Texas, 16 and 17 July with two Aussie speakers:

"Progress In Underground Coal Gasification In Australia
Len Walker, managing director, Cougar Energy Ltd, Australia
Over the past year, significant progress on UCG projects has been made in Australia, with three companies listed on the Australian Stock Exchange actively pursuing project development at different sites in Queensland. Cougar Energy has completed resource definition at its Kingaroy site, and is undertaking final site characterization prior to commencing the pilot burn for a 400MW combined cycle power project. The presentation describes progress on this and other projects being undertaken by the company, and the range of geological conditions confronting application of UCG technology."

And

"Main Directions of UCG Research at The University of Queensland, Australia
A. Y. Klimenko, Reader, School of Engineering, University of Queensland, Australia
This presentation will review UCG research in The University of Queensland (UQ). While this research has significant computational and experimental components, the main distinctive feature of UQ approach is its strong theoretical component that is aimed to improve our understanding of UCG processes. The UCG technology is of inherently multidisciplinary nature involving the issues of combustion and fluid flow in porous media, geological issues and advanced mathematics. This underlines the complexity of UCG processes and creates conditions for cooperation between researchers with different backgrounds. We shall consider the main directions of UCG research at UQ in the context of recent dramatic rise of worldwide interest in UCG. These directions involve reverse and direct combustion linking techniques, steam jacket and its stability, asymptotic analysis of stability of channel widening techniques. "

http://www.syngasrefiner.com/ucg/agenda.asp

 

[Djayness]

Great CXY publicity: UGC conference in Houston, Texas, 16 and 17 July with two Aussie speakers:

"Progress In Underground Coal Gasification In Australia
Len Walker, managing director, Cougar Energy Ltd, Australia
Over the past year, significant progress on UCG projects has been made in Australia, with three companies listed on the Australian Stock Exchange actively pursuing project development at different sites in Queensland. Cougar Energy has completed resource definition at its Kingaroy site, and is undertaking final site characterization prior to commencing the pilot burn for a 400MW combined cycle power project. The presentation describes progress on this and other projects being undertaken by the company, and the range of geological conditions confronting application of UCG technology."

And

"Main Directions of UCG Research at The University of Queensland, Australia
A. Y. Klimenko, Reader, School of Engineering, University of Queensland, Australia
This presentation will review UCG research in The University of Queensland (UQ). While this research has significant computational and experimental components, the main distinctive feature of UQ approach is its strong theoretical component that is aimed to improve our understanding of UCG processes. The UCG technology is of inherently multidisciplinary nature involving the issues of combustion and fluid flow in porous media, geological issues and advanced mathematics. This underlines the complexity of UCG processes and creates conditions for cooperation between researchers with different backgrounds. We shall consider the main directions of UCG research at UQ in the context of recent dramatic rise of worldwide interest in UCG. These directions involve reverse and direct combustion linking techniques, steam jacket and its stability, asymptotic analysis of stability of channel widening techniques. "

http://www.syngasrefiner.com/ucg/agenda.asp

Oh lord, I go to UQ and how typical, how typical that the head of school uses the most complex of words when they are clearly not needed. I wonder how many of the houston texas audience understood words like asymptotic and phrases such as "inherently multidisciplinary nature".

 

[desolator]

wow 280 mil over the next 18 months. sure didnt see that one coming!!!! talked about cashed up to the seems for the future lol...