Ann: Bonus Options Offer Prospectus and Appendix 3B, page-95

I see the usual suspects pumping XPE over the last couple of days.

I would not be touching my "reward" in the same way I did not touch the last "reward". Why? It is not a "reward", in my honest opinion.

The new oppies offering breaks my oppies Golden Rules:
1. only buy oppies which in or close to being in the money. XPE requires a 100% uplift in SP to be in the money.
2. only buy oppies which are long dated. XPE have a very short time horizon.

Third strike is my unwillingness to give a BoD chaired by Athan Lekkas 1c of my money. This BoD has proven, imho, over and over that they are deficient in all areas of capital management. Why is this the case? The BoD only has 1 guy with any experience as a Director of an ASX company and his track record, imho, is appalling.

I only have 1 KPI for measuring Director performance: LT shareholder wealth creation. So all you pumpers and defenders of the indefensible, show me 1 ASX company where Lekkas created LT SH wealth. If you can do that, then I will modify my post. @seriously101 how about this challenge? We only heard from you at a time when Lekkas was up for cash bonuses.

If your KPI for measuring Director performance is dilution. Then Lekkas has performed admirably.

Buying oppies at 0.001 is akin to gambling, imho. If you are a gambler, and you were willing to gamble on the SP breaking 4c, then why would you not buy a trading parcel equal to the amount you'd be up for on the oppies?

Let's look at an example:
Current holding 2m heads
Entitlement: 1m oppies = $1,000
$1,000 = 50k heads at current SP
If you buy this small trading parcel now in the belief the SP will exceed 4c in 6+months, then you will:
1. Make 100% profit
2. Have a 6+months head start for CGT discount.

If the SP does not break 4c, you can still sell at anytime above 2c + brokerage, to get your money back/make a profit.

With these oppies, you can only profit if:
1. The SP holds above 4.1c and, in the example above, you give the company $40k to convert to heads.
2. You can flog the oppies above 0.001.

Anyone who has been holding for a few months or more and is not free-carried, would be in the red. So think about it. If you are in the red and taking my example above, why would you want to give XPE $41k, just to break-even on a deal if the SP is at 4.1c?

Sidenote: imagine the acquisitions and travel expenses if all the oppies were taken up and exercised. I am not a fan of giving this BoD a $20m blank cheque.