A message to the Board,, page-9

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21/10/14

13:24

Post #: 14155842
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Originally posted by Timee ↑

Houndz, I understand your frustration, and in particular let us hope that those behind the science are being adequately compensated for their efforts - especially TB.

But there are a couple of things to keep in mind.

The options going to the board are not free. The exercise price is 71.5 cents per share. If the science does not deliver, they get nothing - the options would be worthless and they would not exercise them. If the science does deliver, they are highly incentivised to maximise shareholder profits, because it would then also be to their own personal benefit. I am a very big believer in aligning management's incentives to those of shareholders. Skin in the game counts for a lot and if they exercise the options they are paying more than you and I are on-market today (admittedly with no downside risk).

I suggest you read the history of Cellestis (CST.AX). Two very astute doctors that came up with a fantastic and technologically disruptive blood test for TB. It was the gold standard with a very large worldwide market. What happened? They tried to manage the commercialisation themselves, with limited success. They were fantastic doctors and highly technically skilled, but lacked the skills required for commercialisation. The end result was they recommended a takeover by an overseas company at well below the future worth of CST. It was a sad story that taught me an important lesson - let those who are good at the job do that job.

Here endeth the rant.

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I think its great to see the board all scraming for options it gives me more confidence on the results!!!!!!

ACL Price at posting: 64.5¢ Sentiment: Buy Disclosure: Held
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