20% Haircut, page-3

The options are exercisable at 50 cents, starting midway through this year. If management we able to turn the company around to bring the SP back up to 50 cents, would you begrudge them the right to buy shares at that price?

Obviously the pay cuts are not an act of complete charity. Looking at the industry, it's reasonable for them to say, well, if I left, where else would I go? The industry is being decimated at the moment.

I had a chat with a friend who has experience in the resources sector and he said while a drop in the price of oil due to increased supply is reasonable to expect, a lot of this fall we are experiencing is due to hedge funds shorting the crap out of oil and not all due to fundamentals.