Strauss, until shares are converted there is no dilution effect of course we all know that...der..
It is a bit of a concern though that there are so many options to be converted...and in theory the SP has to work much harder to recover this value before dilution...
It does not instill much confidence if management are only requesting a 4 cents on expiry...does that mean they dont see the share being much higher than 5 cents by the expiry date...
On the flip side in the short term if the Palta1 results are good and it is determined that maybe the same resource vein overlaps into WHN tenement then SP may double overnight, if results of Palta1 are bad do you think SP will drop in short term...
The Long term Oil prospects also seem very promising, and farm out deal may prove very fruitful..there are a few major milestones that if they come in in favour of WHN will set the company up...
IMO there are some big risks in this stock and management have made a lot of promises before which they have not met...and Shareholders have exited this stock in droves...
Although i do have quite a few concerns, I still rate it as a long term buy at the moment because of the potential upside and oil and gas resource if proven up...may see a sell down and drop in price after options are issued though...
QFY Price at posting:
3.1¢ Sentiment: Buy Disclosure: Not Held
