Saw these two statements in the fools article linked:
"Fairfax reported that Big Un had been issuing discounted shares to FC Capital, the company that provides finance to Big Un’s customers
"Big Un stated that it doesn’t receive any commissions from FC Capital, so it is not clear exactly what the discounted shares were issued for. It seems as though there may be more to come from this story, and for now I would watch from the sideline."
Now I am no expert at this, however simple maths tend to indicate to me that if the sp was at 16c and options were issued to FC Capital at 20c it is not exactly a discount. It was in fact at a 25% premium!
Amazing I know but then this would not have been as much of a sensationalist type of news article if only facts were reported now would it?
BIG Price at posting:
$1.60 Sentiment: Buy Disclosure: Held
