I hold a swag of options, and have been watching in dismay as...

I hold a swag of options, and have been watching in dismay as the SP has eroded down over the last few months.

I never thought that it would get to this situation... but here we are... screwed by the the short term machinations of a manipulative underwriter and more likely than not... submissive management.

No doubt that for shareholders and for the long term, the underwriting is a good thing... however, for those holding options without the intention to convert, then it has been a tragic tale.

After much deliberation, I have decided to convert as many options as possible. Without having immediate access to the funds, I am going to have to acquire substantial debt in order to stay in the DRX game.

I have thought long and hard about this, and aside from the very prospective projects at Wanna Lakes, two single names are the driving force behind my reasoning.

1. Pattersons
2. Hogans

Whilst leading up to option expiry there may be some downward pressure being exerted on the SP by Pattersons, their underlying support of the stock in the form of underwriting is more important.
Neither Pattersons nor Hogans would be recommending DRX if it wansn't a genuinely good prospect.

Once the option expiry is out of the way, there will most likely be a few weeks of additional pressure on the SP in order to weed out some weak converters, after which I would really look for some SP action. There are no guarantees in this game, but Pattersons and Hogans wouldn't be in the mix if there wasn't at least some excellent potential.

This is not advice to any holders of DRXO... but rather than lose your capital by selling out now, the risk v reward of committing additional capital to convert to shares would seem reasonably favourable. Cash, excellent grades and broker support post option expiry should really converge to something positive for the SP.