SLT 0.00% 0.7¢ select exploration limited

slt - oppies undervalued or good entry???

  1. 1,503 Posts.
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    Slt has had a fantastic run and I don't expect it will stop soon. Expected announcements due out, and the stock rising, although it maybe capped at times(killygirl).
    However, there seems to be some discrepancies in the price of the options. SLTOA and SLTO both appear undervalued to me.I have sold some stock lately to pick up the oppies at a discount to the main share.SLTOA has 20c to pay in 2008 should be trading around the 67c range plus the option time bonus. I would say that anywhere around the 72c region would have been fair value.
    Then there is the SLTO's which by now some investors have realised that they are in the money. By virtue of the main share they should be trading around the 35-40c mark. Every cent that the main share goes up, so too should the options being that they are in the money.
    They say things don't stay out of skew for too long? Eventually the market gets it right, and pulls everything back into line. I think that the main share will keep rising, thus, the options offer very cheap entry in slt, and I wouldn't be surprised to see the options jump in price, and or to see the options trading at a premium to the main share in time to come.

    Noggie
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