I really need some serious help. Please please be serious and helpful in replying to me as this is a matter of money.
Like many of you I bought 50 call option contracts Strike $1, for March 22, 2014 expiry last year (total cost $5000). They are about to expire in 2 days.
I am told (still inquiring) that I can request my brokerage to convert this to shares (done manually by brokerage) at strike price that I bought at ($1). That is a new investment of $5000 to have 5000 shares to trade when trade opens.
1. Should I let the options expire and forget the initial investment made in 2013 to buy these 50 contracts (=$5000)?
2. Should I exercise these options and get 5000 shares to trade when trade opens. Mind this is a new $5000 investment over the initial investment (=$5000) made on buying long calls. New total investment will be $10,000 for 5000 shares = $2/ share. With the growth prospects this should go up, provided halt is unlighted.
3. Another scenario, if I picked option 2 and LLEN never got unsalted on NASDAQ, I have been told that companies can decide to go pink sheet. How, will my 5000 shares get treated? Can I sell on pink sheet?
Any sincere advise will be useful. I know there are very smart option traders on the board, and can help me salvage my loss. I realize there is still lot of uncertainty with this stock, hence, I am considering the above options.
The real question, is are you prepared to loose the entire 10k? Never put a penny more into a play than what you can afford to loose. If the answer is yes and you believe that LLEN is legit then it is a great idea to convert these to stock. If the answer is NO or you don't believe they are legit then you should let the 5k go write it off on your taxes and be done.
Do a risk analysis on LLEN and come up with what you think the percentages are that it will trade on the NAZ.
Call investor relations and talk to Sean, ask questions... you can get a lot of info from just how they respond.
Call capital management partners that have handled LLEN offerings in the past, get their take on the situation.
Read the GEO article to find out what the opposition has to say.
Run a forward P/E analysis based on what is known.
Just a few ideas to get started.
The real issue is we don't really know why it is halted, if we knew that this question would be easy.
Your question is really the same as the question all the rest of us are waiting to get an answer for!
Will this thing trade again on Nasdaq, or not!
Almost all longs here believe it will. Some longs have lost hope, but deep down, we all know that this company doesn't look anything like a fraud on paper, and if Nasdaq is fair, it will likely unhalt it.
If it is unhalted and back on Nasdaq, the price is no doubt going to soar! We may have an immediate dip in price, caused by shortseller attack, but after that, 6 mil short shares will get out, and the stock will go flying at least 100 percent up in my opinion... that rise will be magnified in their next earnings, because next quarter will no doubt be times and times stronger in earnings than this one.
What if it doesn't come back on Nasdaq and goes to pink sheet? Well, all of us longs, including you and your 5000 shares are likely to lose. The stock will open for pennies on pink sheets. I would estimate 20 cents at most, but that estimation is off the top of my head. You should still be able to sell your shares, but you just won't make anything on them.