50cent party, page-86

which thread to post these thoughts... well, as 50cent has a call on my thoughts.... well the $1 party is closer so this thread need an upgrade, had a quick look and couldn't find one for $1, common on folks where's your vision its not that far away all things being fair and equalsss?

A few thoughts around value for money, profits and those options.

Remember that CR at 25cent? 160 mill shares, 25cent look cheap now, and it wasn’t that long ago.

And those attached options priced at 45c? 80million extra shares to be had.

… my thought are around although those options had a 2year expiry date, some options can be issued with an early exercise clause… ie if the current share price maintains a value which is, say 25%, above the exercise price for a period of 2-3 weeks then the company can all those options to be exercised early. It happens. Don’t believe that will happen but just wondering as I see other companies having done this. … think it would discretionary not a compulsory enforcement on both side….

So what would be the effect of another 80million shares hitting the boards.

Those partnerships, in the CR are their to make profits, too. We many of use say $1 and beyond with our MC, 45c looks very good. 80mil extra share is really only a small % or overall shareholdings, it all does chip away of course, as we will all see the amount of total shares from 2 years ago, to now.. increase lots.. and still more to come… all will have an effect on our dividends in a couple of years.

80million shares dumped into the on market trading would of course end up be a perfect storm for those wishing to cap, or short our holdings… and we believe it is happening already ….

My thoughts are that, there will be a consolidation of share, ie a buy back…this will keep the mates in the CR happy as they will be rewarded from the 25cent CR as a buyback will be at much higher levels…. And (while not a tax expert in any form) …a share buy back has better tax on profit implications ie not having to pay as much tax as if traded direct on market.

In the end, in any scenario, we retail shareholders do pay, in dilution in any form that takes.

Dilutions as the companies excess fund will pay for a buy back, hence our back pocket.

This of course off set by a SP of $1, but still all those scenarios chip away at returns….

Some of those buy backs, can be offset by the likely IPO, JV, sell off of assets with other parts or our business. A board of directors…. Is likely to go down this track .as they still get paid, and with bonus regardless of cash in shareholder hands. A separate IPO float of assets would and should be kind to shareholders holding, as tax wise etc, we would like get a chuck of free shares in the new entity… as is the example with companies at present on the ASX. 1 for 10, common or better, 1 for 5 held.

To me it is unlikely that the board will have enough time to spread over development of several assets.

Just few thoughts of would might be.