Let me tell you why they didn't hedge.
I was right on the debt, right on the refinancing, and right on the board roll.
It is because the MD has a heap of options that vest in 16 months between $1 and $1.50. If the share price is $1.50 he makes $8m.
The reason they did not hedge is that they bet on the upside. The MD was trying to hit a 6 and win the match.
That's great and to be honest if it was a private company that I owned 100% I probably would have done the same. Why not go for it.
But when you are paid to steward for the shareholders you really cant do that. Better to take a bit less upside to protect the downside.
- Forums
- ASX - By Stock
- TAP
- Ann: Strategic Review
Ann: Strategic Review, page-35
-
-
- There are more pages in this discussion • 24 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add TAP (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
FHE
FRONTIER ENERGY LIMITED
Adam Kiley, CEO
Adam Kiley
CEO
SPONSORED BY The Market Online