I am a newcomer to this stock. Bought a decent size parcel (relative for me) the other week but was getting a little concerned.
I did not and still do not understand why the share price did not keep it's +$0.30 price after the update. Seems they are expanding really well and making profit so it should be a good company.
What worried me the other day was that I have noted that the directors/management do not seem to have been buying any of their own shares on market. This is even though the share price has had a pretty significant reduction from it's highs. Often when this happens one sees management buy in with strength. That then indicates they have confidence in the outlook and the share price has gotten too cheap in respect to the company's future earnings.
Instead what I have seen is that they give themselves performance options at really cheap prices like $0.05 / $0.10 / $0.125 etcetera.
Even today's announcement is 250K options taken up at $0.28 (good) but also 1 Million options at $0.0125.. Have to say having the ability to pick up 1 Million shares at $0.125 would be very nice for me anyhow.
Companies that have recently had directors tip in money when the share was low are: BID (CEO bought b/w $0.50 and $0.60) and very particularly
the directors of NVX tipped in $16 Million as part of a capital raise that was open to the public at $2.90 and the share fell to low $2.00's and even sub $2.00.....now that gave me confidence that they saw value at $2.90 The public portion of the capital raise was eventually cancelled. Never understood that price action.
Not saying anything is wrong but would have been comforting to see directors buy at market prices.
On the consolidation thing. The take away for me is that they will hopefully now take a deep breath and grow what they have and slow down on chasing inorganic growth. I think constantly growing by acquisition runs the risk of directors taking their eye off the ball as far as company management is concerned with resultant risk of messing things up.
Hopefully they make TNT grow, be really profitable and hopefully the market eventually wakes up that this is a good thing.
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