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PXR - Palace Resources

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Pommiegranite said:
Just notice that options expire in 5 years!!!!!!!!!!!

What's with that?

Why would a company give that long???
Click to expand...

Hi Pommiegranite,

The options expire on 30 June 2012 with an exercise price of 20c. 5 years is definitelty a long time. The option issue was a reward for loyal shareholders.
DYOR
 
DAZT49 said:
Its a long time since the last company ann. 17/4/07 re Uranium in Africa.
Must be one due soon.Lets hope its a good one.
Click to expand...

Hi Datz49,

With this stock one needs to be patient. A positive announcement on the company obtaining a good uranium project in West Africa may well an enormous impact on PXR's share price. One only has to look at other exploration companies that have obtained some ground there to witness the generally extremely positive effects on their share prices. If the West African situation doesn't work out (unlikely IMO) then there's always the NT tenements or even the Lake Teague Uranium Project in WA. With $2.783 million in cash as at the end of Mar 07, the market cap for PXR is very low, certainly one of the lowest going around for a uranium focussed company.
DYOR
 
Hi all

have a question in regards to the OPTIONS (PXRO)

If you hold the options till 30th June 2012 the exercise price is .20c.

So you pay say .07c now and then 20c in 2012 assuming you hold till then.

How does this process work when you hold till the expiry date, Never done it before so asking.

Do they convert to shares automatically?

Do you have to have the amount required in your account as of that date?


Cheers
SG
 
Stargazer never converted before either but you need to pay befor they expire so 29th June 2012 is fine and what you will have paid is the cost of the option plus 20c(or whatever option price is).This is as far as I know irrespective of what share price is-if its $1 you end up paying 27c for a $ share-can of course go against you!
 

Hi alankew,

Leverage works both ways. The bigger the return, the higher the risk as the saying goes. I try where possible to buy long dated options of companies that I invest in. With long dated options one seems to have more time working in your favour. Also, when you think about it, when my family purchased 1,070,000 PXR options at an average of 7.7 cents, to have purchased the same number of shares would have cost around $220,000 as opposed to around $82,000 for the same exposure via the options. I have never exercised any options in my 28 years of trading as I've always been able to sell well before expiry as I tend to purchase options with long expiry dates. PXR is definitely one for the patient. I can afford to wait as the options have over 5 years to go before they expire. Any positive developments from its Tanami project (in particular), its neighbour NTU, or the company obtaining West African uranium projects may have a strong impact on PXR's share price. Any other thoughts or info?
DYOR
 
Greggy I personally think it is a low risk trade but was just answering stargazers question.I am fairly new to options and mainly see the positives of investing this way and it is something I am keen to carry on doing.Spread is sometimes a bit scary-not just pxr but all options.Cant wait for ERLO to start trding.Greggy what is your experience of buying options when they are just released,are they particularly volatile and do they settle down after an initial sprint
 

Hi Alankew,

I've been trading options since the mid 80s during what was a previous speculative mining boom. From my own experience, I often feel that options are best purchased soon after listing as they tend to be cheaper at this time. I did this most recently with MZMO, AQDOA and not forgeting PXRO. IMO when they first list they tend not to have many buyers and there's usually more selling going on. Often the buy/sell spreads are a fair distance apart. Therein lies the potential opportunity. Options can often be very volatile due to the leverage involved. When shares start going for runs, more often than not one will find that the options go up by a much higher percentage, such is the nature of leverage. However, it works both ways.
In relation to PXRO, I notice increased buying support at the 6.1c to 6.3c range, with over 550,000 wanted in this price range with a small seller at 7 cents.
In relation to your comment about ERLO, I agree wholeheartedly. Having been issued at 1 cent, it will be very interesting to see what price they will list at.
DYOR
 
Hi

Thanks Alankew and Greggy.

I understand the reasoning to take this approach. As indicated previously these PXRO options were a reward for loyal shareholders.

Do these other companies you mentioned Greggy do similar or is it something that is not a norm so to speak.

I use E TRADE and when i go to do the TRADE TAB and then preview order it does give me the expiry date but not the exercise price.

In the OPTIONS TAB it does not take the 4 letter code.

So Greggy do you concentrate on the companies that offer similar to PXR/PXRO or you just buy options with the longest expiry date in companies which you have sifted out.

Cheers
SG
 
An increasing number of companies are having loyalty option issues.
I tend to buy long dated options in overlooked companies in order to maximise my returns.
DYOR
 
motion said:
Some long awaited news just out "Airborne Electromagnetic Survey"..

lets hope this gets some interest...

Here is the link

http://www.asx.com.au/asx/statistic...rchByCode&releasedDuringCode=W&issuerCode=PXR
Click to expand...
Hi motion,

This stock has been quiet in terms of announcements of late.
The aerial electromagnetic survey over the Browns Range South radiometric targets at the Tanami Project will be completed by the end of Aug 07. As the results of this survey are known, this will be announced to the market.
Hopefully, this may lead to increased market interest.
I noticed increased buying support today.
DYOR
 
Iv never even seen oppies with

What an opportunity.

Just get set and forget about them if you are keen on the fundies.
The leverage is incredible.

The market cap of PXR is a joke.
If they do find something or get a Canadian takeover or JV they can very easily go to $1 (look at HMR and others).

That would put the oppies at 80c.
5x on the heads but 12x your money on the oppies (at 7c).

The best time to buy oppies is when they are "just" out of the money.

In my opinion.

(not holding, but interesting.......)
 
I agree, great time for oppies, only 37% of PXR price. If the stock gets a run on that will increase with momentum to 70-80% of stock price.
The news today was treated with indifference...NO SALES (for PRX) 70,000 ops to one buyer before the ann.
I have both PRX & PRXO..tho not enough.
 
Hi Nizar,

I agree with you wholeheartedly.

As previously mentioned a number of times, PXR has multi-bagger potential on a number of fronts.

1. Being next door to NTU in the Tanami, should NTU come up with exciting results there may be strong potential for a considerable effect on PXR due to its proximity.
Its good that PXR plan to complete its survey in the Browns Range South area by Aug 07. This particular part of PXR's ground in the Tanami is closest to NTU's ground and is on non-Aboriginal ground. Should the survey come up with good results it will hopefully lead to more market interest.
There's always the possibility that down the track that NTU, Areva or Mega may approach PXR about a possible joint venture. For Areva to have taken a substantial placement in NTU and also become the operator of the Super Gardiner-Tanami Projects speaks volumes about what Areva thinks of the area. Look what happened to NTU's share price after Areva got involved. NTU's share price is still holding up relatively well compared to other uranium explorers.

2, Should PXR find reasonable uranium projects in West Africa, this may also lead to increased market interest and a higher share price. Take a look at other companies that have interests in this region.

PXR has been well and truly overlooked by the market. The only negative is lack of PR. Management are trying to rectify this matter. I still hold all my options and have added to them of late as I feel that they have considerable upside for the reasons that I've just given. Often a large number of stocks are mispriced by the market especially during the first 6 or so months after they list. Past examples have included UNX, UXA, MZM and ERL. Once market interest increased so did their share prices.
With PXR, patience is definitely needed. In the past I've lacked it with a number of stocks only to see them hit new highs.
DYOR
 
I rang Adrien Wing, Executive Director of New Age Exploration (NAE), based in Melbourne, earlier this week in relation to its search in conjunction with PXR (50% each) for West African uranium projects. He advised me that they're currently doing due diligence on 2 West African uranium projects and that he's optimistic about its foray into this particular continent. I look forward to developments on this front.
Iron ore has certainly become the flavour of the month, but there's still significant market appetite for uranium stocks, especially those with a West African flavour.
DYOR
 

Greggy - Thanks for the update your info is always great help.... I still hold..

Yep Iron ore has really taken the spot light this month...
 
No worries motion. With PXR one just has to be patient. PXR is starting to step up its exploration program in the Tanami, next door to NTU, and is being active in its search for West African uranium projects.
My family still holds all of its options. I see the options as being a 5 year punt as to whether the share price moves to 28c or higher during this period. Hence, I am comfortable with the leverage involved. Of course, we all to see it go higher in the short term. Despite iron ore stocks now being the flavour of the day, PXR still holds strong potential on both the Tanami and West African fronts.
DYOR
 
If you are interested in charts (gotta do something while waiting for the 'pot o gold')..
On this chart we have 2 areas of consolidation
1. 16c - 19c
2. more recently 16c -17 c
In the recent consolidation we can see an increase in volume (tho small) indicating more interest hopefully developing into momentum.
If you have read any of Joe Ross's info you can see that we have points 1 and 2 of a 1,2,3 low.
Point 1 being the most recent low, point 2 being the first retraction .
IF..our next trade day gives us a higher high, and a higher low we will have point 3 (correction back in our favour)
IF.. the SP breaksthru 17c then point 2 (18c) we MAY have an indication that a trend is forming.
With the small volumes and tick sizes lets say hint rather than indication.
Obviously a positive Ann SOON would help.
An obviously IMO and DYOR and PYFO
 

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Hi Datz49,

Thanks for posting the nice chart. I firmly believe that PXR has been substantially overlooked by the market. Its good that it held up reasonably well today, rising to 17c on thin turnover. I feel that its only a matter of time before more people take a look at this one.
DYOR
 
Hi Greggy,
Agree, remember the SP was 45c in Feb.
In my last post i said
"IF..our next trade day gives us a higher high, and a higher low we will have point 3 (correction back in our favour)"
Well that happened, but very weak ,only 3 trades too.
The SP is going to have to open and close above the 17.5c to start moving IMO
Dazza
 
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