FFR - Firefly Resources

chrissyoscar · 22 May 2008

Re: SO IT WAS YOU BUYING THE 10C OPPIES

tigerboi said:
Thats a premium of 66%....mmm

uhh it was you paying 10c for a 6c oppie,well while we all twiddle our thumbs waiting for all the drilling to start & finish on the IO projects i can see a retrace to the low teens again as the impatient punters who bought around the 23c-28c get nervous & panic(i rode it to 36c & back to about 11.5c)

Guess who will be ready to pounce on the panic merchants??

sub 20c the float price is good value as they have made solid progress in the last 6 months but the proof is always in the pudding...drilling..tb

Brumby north of AGO at pardoo(AGO 14 mt of dso io)

It does sound rather silly but I looked at it a little differently.
I have 1/2 my portfolio in safe boring blue chip stocks which I didn't want to touch.
I have some shares in AGO which I consider low to medium risk with good potential and I have a few species such as BLR, KIK, NDL which I was to scared to sell in case they take of and I miss out.
Now after spotting this stock on this site and seeing the great support you (especially you) and others where giving it and it's location and potential I was keen to get on board.
By paying a premium and getting the options it enabled me to purchase more option-shares.
I pay a premium when I exercise them but if they live up to there potential I wont care about the premium.
Look at it this way $8500 @ .23 a share is 36950 shares, $8500 @ .113 (which I paid averaged out) for options is 75000 options which will cost me another $11250 to convert to full shares.
In one of your earlier post you predict a potential price of $1.50 by Christmas. Lets say it goes to $1 by Christmas I'll be much happier having 75000 options than 37000 shares.
Now what price it'll be by Christmas who knows but I do agree that it has great location and great potential.
If you are right and they continue to drop due to nerves then perhaps I'll sell some blue chip stuff or at least trim a little and buy more.
There's logic to my madness I think!

rob · 22 May 2008

Re: BMY - Brumby Resources

I just bought shares tiger no opps. just to start and watch it, being new i dont want to go mad also have a few shares in ago and fmg. hav'nt been doing this long at all just started when a friend told me to put a few bob on ago now i cant get enough. but finding it hard to remember everything. But thanks for all the advice learning slowly and want to keep hold of them for a while do you think its a good idea.

tigerboi · 23 May 2008

Re:BRUMBY RESOURCES FIRST TELYAGEL SURVEY

Here is the first gravity survey to come out of telyagel,the greenfields north of pardoo never before has it been explored...tb

Brumby resources,telyagel gravity survey

tigerboi · 23 May 2008

Re:BRUMBY,PARDOO IRON ORE TARGETS,DRILLING SOON

I am posting the pardoo iron ore targets here for the first time as some of the newer folk to brumby may not have seen them as yet,this is what first sent brumby on its gallop in november.these IO targets..

It is these 2 large targets that brumby will begin drilling on in the 2nd half of this year not to be confused with todays anns.of the survey further north at telyagel which i would expect drilling to start possibly after xmas?...tb

Brumby resources Pardoo IO targets

MACH · 23 May 2008

Re: BMY - Brumby Resources

Hey Tiger, what about the goldsworthy iron targets? U got any maps that show targets through the whole tenements?

tigerboi · 23 May 2008

Re:BRUMBY OPPIES A NO BRAINER!

tigerboi said:
Bmyo are the 15c january 2010 oppies,if you go back a few pages you will see this topic covered in great details,bmy have been trading previously at a 40% discount to bmyo.there should be a 15c difference..tb

go the bmy as bmyo in its first 4 weeks of trading seemed way too dear..

You can see above where i spoke of the oppies either being way too high or bmy at a 40% discount...thats why i cant work out your logic?

you could have got 50,000 bmy @0.17c...with a high of 0.25c today.closed at 0.23..so you should be sitting on so far 35% nice little profit...

instead you got yourself 75,000 bmyo @ 11.3c...they are now .105c & should be around 8c...atm you havent made a cracker...

ok lets assume you want all the 75,000 bmyo so you will put your hand in your kick for the exercise price of $11250...

you will have 75,000 bmy for $19750...av sp...0.2633...

for the final price of $19750....75,000 bmy via oppies OR

50,000 BMY @0.17C..lets say next lot at 0.18c with the $11,250 bmyo oppies money...

$11,250 divided by 0.18c = 62,5000 + 50,000 bmy=112,500 bmy @ av.sp of

0.1755...oppies deadset no brainer...

can you see the huge difference as the bmy where trading at a 40% discount & that shows in the present loss v the 35% bmy would be for you know?

going the oppies cost you 37,5000 bmy...now or later.

also can you show me where i said bmy would be $1.50 by xmas? my private target is slightly less than that...tb

tigerboi · 23 May 2008

Re: BMY - Brumby Resources

MACH said:
Hey Tiger, what about the goldsworthy iron targets? U got any maps that show targets through the whole tenements?

You need the secret password for that type of info mate..tb

goldsworthy mine closed down 25 years ago....the pardoo formation is continous into goldsworthy..

chrissyoscar · 23 May 2008

Re: BRUMBY OPPIES A NO BRAINER!

tigerboi said:
You can see above where i spoke of the oppies either being way too high or bmy at a 40% discount...thats why i cant work out your logic?

you could have got 50,000 bmy @0.17c...with a high of 0.25c today.closed at 0.23..so you should be sitting on so far 35% nice little profit...

instead you got yourself 75,000 bmyo @ 11.3c...they are now .105c & should be around 8c...atm you havent made a cracker...

ok lets assume you want all the 75,000 bmyo so you will put your hand in your kick for the exercise price of $11250...

you will have 75,000 bmy for $19750...av sp...0.2633...

for the final price of $19750....75,000 bmy via oppies OR

50,000 BMY @0.17C..lets say next lot at 0.18c with the $11,250 bmyo oppies money...

$11,250 divided by 0.18c = 62,5000 + 50,000 bmy=112,500 bmy @ av.sp of

0.1755...oppies deadset no brainer...

can you see the huge difference as the bmy where trading at a 40% discount & that shows in the present loss v the 35% bmy would be for you know?

going the oppies cost you 37,5000 bmy...now or later.

also can you show me where i said bmy would be $1.50 by xmas? my private target is slightly less than that...tb

Please except my apologies, it was actually another poster on the top$tock web site who mentioned the $1.50 price by Christmas.
Now I know you think I'm an idiot but do you think I would have bought options for an average price of .113 if I could have got full shares for .17c.
As stated I only spotted this stock late last week and since then it's been trading at between .225 and .25. Sure the price might drop to .17 again but there's no guarantee it'll do that.
Anyway I'm sure this is becoming boring to everyone so lets concentrate on the good stuff.
You have been a great help and your input has been greatly appreciated.

BigJohnny · 24 May 2008

Re: BMY - Brumby Resources

Hi All,

The way you should decide whether to buy the options or stock, is to work out the current fair price for the options by calculating the interest saving you receive by not paying the exercise price upfront, and delaying payment until exercise date.

With the following close prices, BMY = 23 & BMYO = 10.5c
Exercise price being 15c, hypothetically mean you could put 15c in the bank earn 7.25% for the next 1.5 years = roughly 1.5c starting today.

If stock is trading 23c then the options should be worth fair price 9.5c
23 - 15 + 1.5 , so at these closing prices the options are trading 1c over.

By being active in the stock and options, you could capture the differences over the options life.

Cheers
BJ

AstroGirl · 24 May 2008

Re: BMY - Brumby Resources

BigJohnny said:
Hi All,

The way you should decide whether to buy the options or stock, is to work out the current fair price for the options by calculating the interest saving you receive by not paying the exercise price upfront, and delaying payment until exercise date.

With the following close prices, BMY = 23 & BMYO = 10.5c
Exercise price being 15c, hypothetically mean you could put 15c in the bank earn 7.25% for the next 1.5 years = roughly 1.5c starting today.

If stock is trading 23c then the options should be worth fair price 9.5c
23 - 15 + 1.5 , so at these closing prices the options are trading 1c over.

By being active in the stock and options, you could capture the differences over the options life.

Cheers
BJ

Precisely Bigjohnny, options usually trade at a premium to the underlying
intrinsic value. If they traded at their intrinsic value alone, why would anyone tie up extra capital buying the shares.

BMYO have been trading with a premium of 2c to 3c, which is reasonable given 18 months to expiry.
So a premium of 2.5c gives you an average time decay of 0.138c per month

Tiger you naughty boi !
You wouldn't be talking down the options so you can loadup at a nice discount
would you

tigerboi · 24 May 2008

Re: SO IT WAS YOU BUYING THE 10C OPPIES

chrissyoscar said:
Look at it this way $8500 @ .23 a share is 36950 shares, $8500 @ .113 (which I paid averaged out) for options is 75000 options which will cost me another $11250 to convert to full shares.
In one of your earlier post you predict a potential price of $1.50 by Christmas. Lets say it goes to $1 by Christmas I'll be much happier having 75000 options than 37000 shares.
There's logic to my madness I think!

Sorry if i seem confused but you did say you paid .113 for 75,000 bmyo(correct?) for $8,500..hence my post showing how you went the wrong way...now minus 37,500 bmy.

Now as i pointed out why would you buy bmyo at 11c when the final cost will be 26c when at the same time you could have got bmy at 17c..

forget about parking the exercise money in the bank for a lousy 7.5% when right now you could have been 35% up...on 50,000 bmy

oppies should follow the heads & in this case they should be 8c,ive decided to buy a substantial amount of bmyo but not any where near the current price...tb

tigerboi · 24 May 2008

Re:I WANNA PAY MORE!ITS INTRINSIC VALUE..LOL

AstroGirl said:
Precisely Bigjohnny, options usually trade at a premium to the underlying
intrinsic value. If they traded at their intrinsic value alone, why would anyone tie up extra capital buying the shares.

BMYO have been trading with a premium of 2c to 3c, which is reasonable given 18 months to expiry.
So a premium of 2.5c gives you an average time decay of 0.138c per month

Tiger you naughty boi !
You wouldn't be talking down the options so you can loadup at a nice discount
would you

2.5c premium??.gee im glad none of you are my accountant thats for sure
i bet you are thinking now i should have gone the bmy at the 40% discount price...bmyo have been trading 66% more than they should have been..

bmyo..10c..bmy..21c,or is that the 66% extra intrinsic value?crazy logic

listen ive decided my price before bmyo started trading,its got nothing to do with talking them down ok.go back over the trade data & posts here to see what i said about the discount bmy were.

ive already shown in great detail what happens when bmyo at 11c when bmy was 17 & 18c...im just gobsmacked at the attempt of logic??

excuse me ive already pointed out that bmy were trading at a 40% discount so as for intrinsic value if you think they are worth 10c then go for your life,but i cannot understand how the oppies at 10c v 23 bmy are value when recently the bmyo were 8c when bmy were 18c??

See why would you finally pay 23c when you couldve got bmy at 18c...??
(because you all aint ever gonna exercise...you thought it was a good trade thinking i can make a killing here...im onto you newbs...)

since when does the intinsic value of an oppie mean you end up paying 27.7% more (23c v 18c)

i thought the idea was to get leverage?

its like going shopping & saying how much is that?..$1.50 sir .ok i will give you $2.00...reckon you all should give yourselves a few on the run through.

dont forget you are inflating the price way over the real intrinsic value..

gee the other bmyo folk have seen a few coming here...anyway good luck if your happy to pay more for your bmyo...me ill wait for when the guys with the intrinsic value premium...finally work out its a dumb play...tb

tigerboi · 24 May 2008

ReARDOO IGO RAB DRILLING.

Ok mate you gave me the pass wordAnother map of the pardoo area this one is close up near to recent ground of AGO & close by to bhp,just to the north is the tenement area of BMY that was bought off IGO.the rab drilling by IGO is now ground that bmy intend to continue drilling at.

Brumby resources tenement purchased from IGO

BigJohnny · 25 May 2008

Re: I WANNA PAY MORE!ITS INTRINSIC VALUE..LOL

tigerboi said:
2.5c premium??.gee im glad none of you are my accountant thats for sure
i bet you are thinking now i should have gone the bmy at the 40% discount price...bmyo have been trading 66% more than they should have been..

bmyo..10c..bmy..21c,or is that the 66% extra intrinsic value?crazy logic

listen ive decided my price before bmyo started trading,its got nothing to do with talking them down ok.go back over the trade data & posts here to see what i said about the discount bmy were.

ive already shown in great detail what happens when bmyo at 11c when bmy was 17 & 18c...im just gobsmacked at the attempt of logic??

excuse me ive already pointed out that bmy were trading at a 40% discount so as for intrinsic value if you think they are worth 10c then go for your life,but i cannot understand how the oppies at 10c v 23 bmy are value when recently the bmyo were 8c when bmy were 18c??

See why would you finally pay 23c when you couldve got bmy at 18c...??
(because you all aint ever gonna exercise...you thought it was a good trade thinking i can make a killing here...im onto you newbs...)

since when does the intinsic value of an oppie mean you end up paying 27.7% more (23c v 18c)

i thought the idea was to get leverage?

its like going shopping & saying how much is that?..$1.50 sir .ok i will give you $2.00...reckon you all should give yourselves a few on the run through.

dont forget you are inflating the price way over the real intrinsic value..

gee the other bmyo folk have seen a few coming here...anyway good luck if your happy to pay more for your bmyo...me ill wait for when the guys with the intrinsic value premium...finally work out its a dumb play...tb

Hi Tigerboi,

Apologies if i have offended. My logic was based on if an investor wanted to invest in the company today, would they prefer to buy the option or stock now?

Back when BMY @ 18 vs. BMYO @ 11, i would have bought the stock BMY @ 18, as BMYO should have been priced closer to at least 3c (18-15c).

And if today i wanted to buy more Brumby, looking at BMY @ 23 vs. BMYO @ 10.5. I would buy BMY @ 23, as i believe BMYO should really be @ 9.5 being 8c intrinsic value and 1.5c interest saving. So final BMYO outlay should be 24.5 not 25.5c

We should never overpay.
Cheers
BJ

tigerboi · 25 May 2008

Re:GOLDSWORTHYS 2 BIG PUPPIES!

Okay you twisted my arm mach here is the puppies that Brumby acquired from IGO who then took 4m bmy at 0.15c for the rights then IGO took up the 1/2 at 14c & the oppies which keeps them at 11%,very smart move that later on prevents anyone getting 90% of BMY...tb

Here are the 3 targets all at once,lots of potential to drill.
Goldsworthy iron ore targets,Pardoo targets,telyagel gravity survey

dogwithflees1983 · 25 May 2008

Re: BMY - Brumby Resources

tigerboil, great maps mate.

Do u know where i could find maps that shows which companies own tenements around the AGO/FMG area??

Cheers

tigerboi · 25 May 2008

Re:GOTTA DO THE HARD YARDS MATE(RESEARCH)

dogwithflees1983 said:
tigerboi, great maps mate.

Do u know where i could find maps that shows which companies own tenements around the AGO/FMG area??

Cheers

What you gotta do mate is just the old hard yards of research,go to ago & fmg websites,announcements then when you see a neighbour such as say BRM then you do it again,bit like a jigsaw.. you will find a few real gems that you keep to yourself,also go to the research link thread on here,there is a few good sites to steer you in the right area...

I found hao long before it ran to 40c(they had drilled with fmg)so I kept that one for just me!...TB

tigerboi · 26 May 2008

Re:BRUMBY'S BOOTU CREEK MANGANESE TARGETS

I thought id change the brumby direction over to the manganese project at bootu creek close by to the OHM manganese mine.here is a map of the area plus the targets identified last year...tb

hem targets at bootu creek

landsat image of the bootu creek tenement

YOUNG_TRADER · 26 May 2008

Re: BMY - Brumby Resources

Ptience Tigerboi patience,

The company is dirt cheap and has some of the best Fe ground in the Pilbara, I just need it to firm up some projects before I do a full write up as at this stage its stil a bit spec, need just a bit more meat to it and its a-ok

We will be rewarded once more work is done

tigerboi · 26 May 2008

Re: BMY - Brumby Resources

YOUNG_TRADER said:
Ptience Tigerboi patience,

The company is dirt cheap and has some of the best Fe ground in the Pilbara, I just need it to firm up some projects before I do a full write up as at this stage its stil a bit spec, need just a bit more meat to it and its a-ok

We will be rewarded once more work is done

thats right buddy she needs time this wild brumby,once all the drilling is done then she will have her head(dont worry still a few things to come yet..)still a spec as you say & thats how i like it.tb

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