more options pressure

I note that the MHM options have 2000 on the bid at 30c and then not other buyer

I also note another 120,000 options have been exercised today , and the stock is sold down , maybe it is just the overall market, and coincidence but I suspect that maybe the options pressure I talked about in the 80s and I mentioned because of my own experience with PGC options is begining to occur with MHM

Before saying they are different companies I want to point out the PGC fundumentals are on the up, not down with ebit, revenues all up over trhe last 2 years , PGC only has 25m shares on issue so a market cap of $5m , but has 15m revenue up from 9m theyear before , that is double MHM , and it is profitable where MHM is not

Despite that their stock was sold down close 50% , from 40c to 22c and as a holder I was stunned , maybe it was of 1 disapointing quarterly in december , that came out about the same time the options notices were sent out , their options fell due May 28 i think ,and the opps crashed to almost zero , so hopefully post then the head stock will recover .

Back to the topic and reason for comparism , is that MHM still has over 25m options that are absolutely friendless , and the only way to get the value from them is to covert and hold or convert and sell .

If you convert and sell , and MHM next quarter is again a dispaointment , the cash one requires to exercise may not be that attractive to option holders and they might just exercise and sell .

As August fast approaches the company is going to want to be certain they have the 5m cash coming in from the options to fund the US plant so the money is vital .

If the stock was to fall as my comparism on a poor June quarter , I suspect the option selling pressure could slice even more off the current value of 55c and spook more and more option holders sooner rather than later .

Just my opinion and hopefully a useful food for thought .

On the positive side if less options convert , then MHM may be able to get an underwriter for them and allow its first insto on to the register

The Moore stephens team headed by Alex Fabbri would be a greta start to have on board .