As you mentioned there were no complaints when the SP rose to 3.5+ cents with those early options in play.But those 1.1 c oppies were out of the money at the time of issue and the heads were priced at 0.75 cents. That is why I wold have preferred the August raise to have had free options at 4 cents, rather than the free 1.1 c gifts. My issue with the August options was as they were ITM at the time, it was grossly unfair as they were not available for all existing holders.
The reason for not issuing a new series of options was that it would have been " too difficult" to start a new line of options for only 70 million ( excluding the other 75 million given to brokers). But my suggestion would have been a 1:1 at 4 cents, not a 1:3 so there would have been 300 million 4 cent strike options. issued. More than enough for a new series.
The optics around the ITM options were atrocious whereas the mechanics of the options were not material. The damage to BRK with the issue of the ITM options was " reputational" more than anything else as it exposes the company to accusations of pandering to " mates" , brokers and not caring about the small end of town.
Agree that the current price action is not related to the August options ( even taking the bad blood caused) and more market related. Sentiment for fossil fuel E&P companies is in the toilet and that is a significant contributing factor IMO.
The current sp does not reflect the current value of the assets in the company by a factor of 3-4 x. This is only an issue for those that cannot hold long term or bought in on the expectation of a short term gain.... or option only holders who have the clock ticking.
For those of us who are in for the longer term, the current SP is not really an issue, as long as the company progresses it's business plan.... and this progression has been aided by the August CR.
Cheers
Dan
BRK Price at posting:
2.1¢ Sentiment: Buy Disclosure: Held
(20min delay)