light at the end of the tunnel

Or oncoming train?

Interesting announcement re employee incentive options with the first lot exercisable by 31 December 07 at 23.5 cents. With LRG employees operating in critical roles at key military/government installations around the country, seems to me this can only go two ways. Either LRG survives and prospers or it gets taken over. Otherwise who employs the people to do the mission critical jobs?

There is no point in issuing incentive options to key employees if there is little chance of them being in the money at the time of exercise. Having said that, I realise that options expire unexercised all the time due to an ailing share price, but still, this does seem to be a pointer to the return to profitability promised by Michael Addisson in his last act as CEO. Not to mention that it's a fairly high price from the unpleasant place we are sitting now. They could just as easily have set them at a much lower price. Seems to indicate a high level of confidence in the future.

At the very least it's a positive indicator that serious efforts are being made behind the scenes to get the company back on track, or at least stop it falling off the rails. Nightingales? I guess we'll know soon enough when Farrar graces us with an update.

Or am I being too simplistic?