Like you, I'm getting a lot from the for/against debate (though...

Like you, I'm getting a lot from the for/against debate (though not the personal attacks). In truth, this is a debate about:
when the company becomes profitable,
how profitable it will be, and
what the share price will be at that moment in time.

• The speculation might be that DRO is announced to be (or to become) profitable at the next AGM. Most here on HC think that is unlikely and that we have at least 12 months to go.

• As to how profitable per share DRO will be, we know that it will be about 10% less so if the free shares at the EGM and AGM are approved simply because that is the proportion of extra shares that will have been issued.

• Lastly, as to what that share price will be (with price-earnings multiples etc. factored in), while no one really knows, most of us believe it will be north of 40 cents, possibly up to $1 depending on the PE ratio.

If management were so confident of profitability, they would also have had an estimate of where the SP would be at that time. None of us would have minded a ZEPO which struck at a SP which signified profitability (even if it diluted our profit by up to 10%), because we would all think it was onward and upward from there.

What does the current ZEPO proposal say about management's attitude to profitability. It could say:

• "We are so confident of profitability that we are awarding ourselves almost $8m worth of shares now."; or

• "We are not confident enough of profitability any time soon, so we thought we would take the money now so it won't matter if the SP tanks because of some new kid on the block"

WHICH IS IT?