ahm IS AT 755P IF YOU LONG IT ON SPREADBET A 350PP BET WILL TAKE 13212 MARGIN,WE ALL KNOW THAT IT WILL GET TO 800P THE GE BID PRICE SO YOUR RETURN WILL BE 15750 PROFIT WITHOUT ANY RISK.

hijeff,
i appreciate that but if the market moves the wrong way losses accumulate on a pro rata basis?
5% on a couple of months would do me as im not into serious gambling ie spreadbetting

Another path into this one is Covered Warrants - there is one call (G142, I think) - trading at around 360p with delta of 0.8. There's (say) another 50p movement in AHM, so another 50p*.8=40p in the warrant which is 11% for little to no risk (compared to 7.5% in AHM) - not huge leverage, but better than nothing. Big caveat - haven't looked at the expiry date or the time decay rate yet, so this might be counted out because of that

Correction to those figures - AHM is 760p mid, G142 call warrant is trading at 283/303.

This gives potential 40p rise in AHM, or 5%, excluding dealing costs. At 0.8 delta, there is a potential 32p gain (to 335), or 10.5%, offer-offer. Assuming the same 20p spread on the warrant at close of the deal, the bid would be about 315 - giving an offer-bid gain of only 3.9%. Doesn't look particularly attractive after all. With a June 2004 expiry, and a time to clear the deal of perhaps 6-9 months, that looks a bit close for comfort as well.

Ah well, nice idea - back to the drawing board!

the prediction came true,any1 bother taking some?