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.
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Let me tell you why they didn't hedge. I was right on the debt,...
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