The report has added more certainties to the FMS IO. More options would be exercised, are bonus for cash flow but dilute the value.
If the following drilling holes don't surprise the market negatively, it is good news less options could be exsercised and the cash flow should not be problems at all.
The option exercise is just good if something seriously wrong, which could be the reason that some big boy could decide to force the price below $0.10. Their capital on FMS is still risk capital but they also prepare to move in more risk capital, or stratetic capital based on the drilling results and some fixed time interval for their money playing strategy.
I planned moving into gear funds in 2006 with about $200,000. I seperated my capital into 6 groups and bought in for about 6 months. It is to use the time filtering function, which is logic, popular, and works to catch up the bottom and benifit from big and long enough upward trend. This time filtering helps me a lot to keep my funds has not been hurt by this financial tsunami terribly.
You could not give up the chances and you could not forget the risks. I feel the big guns are doing so. The game rules would be changed slowly since the drilling. The time to jump in for bargain only seems gone.
FMS Price at posting:
9.6¢ Sentiment: Hold Disclosure: Held
