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04/06/21
12:29
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Originally posted by JPGuru:
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So you agree that options are COST. Obviously not the actual cash cost but it is the cost to the company on the books. Also you agree that every additional shares issued dilute the shareholder value and I hope I don't need to provide any evidence on that one.. and I won't be prattling as a nong ... ! CNW granted way too many options and that is also significantly lower price (1.7c) then actual price (3c) on the market on the day of grant using fair value formula... you may support this method of remunerating but I do not. Obviously all other options are OK as they were above the market price but still 100m option outstanding for what? Now, we are talking about option cost not about performance and if anyone responsible for stagnant price of this stock then it is board and CEO.. IMO. Providing positive books by paying employees on option is not good performance it is called "doctoring books".. IMO. A definition of good and capable management is DTL team which has provided growth to revenue, NPAT, dividend and share price since appointment of new CEO while CNW also has CEO for 4.5 years and we have yet to see any organic growth (dividend/share price).... CNW highly depend upon Canberra business.... which is not a good sign for any business if their 60% to 80% revenue is from one source of income... I do thank you for referring to DTL on this forum as it wasn't on my radar before your reference.
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jp, you have got no idea. Nearly 50% of all govt spend on IT is in Canberra. Its an important market for every computer services company, hence why cnw set up an office and used millions of dollars of capital in the process. Its taken many years to finally get a return, and now you want to chuck out management just as they get traction