ALF has been doing a share buyback which reduces the capital of the company & the liquidity of the stock from a trading point of view.
We should therefore expect increased dividends & another issue of free options as they would be extremely profitable for the company when exercised, at say $1.25, considering all their buyback has been well below that level.
It would be in the company's interest to set the options at $1.25 so that they are exercised & not be too greedy & set a higher exercise price & have them not exercised.
The increased number of shares will overcome the current problem of lack of liquidity in the stock & make it more attractive for investors.
This is currently a great opportunity for Justin to get his timing right in issuing the options so that many of them are exercised well before expiry thus giving ALF additional cash with which to play.
Tomorrow would seem to be an ideal time for the issuing of the options & giving him time to increase the dividends to boost the share price in order that the options are exercised.
ALF Price at posting:
$1.13 Sentiment: LT Buy Disclosure: Held