Why can't people see this is not management putting their money where their mouth is. Management converted their notes because they were worth twice their face value. Please put yourself in our directors shoes.
If you were given the option to purchase $4,000,000 worth of shares for $2,000,000 would you take up the option? I'm guessing the answer is yes. This is the offer that our directors faced and they took the only logical choice; convert the options. If our directors chose to throw away $2,000,000 I would sell all of my shares now. For the directors to decide not to convert their options and pocket an instant 2 mill would display an incredible degree of financial ineptitude. Forget that I have invested a substantial proportion of my net wealth in this company, forget that I have held my shares since the inception of this company, ignore the fact I have been holding my breath for 14 years with the firm belief that this company is on a huge winner, even ignore the fact that I am still substantially in the red, I would not hold shares in a company where the directors demonstrated that they cant even manage their own finances. Actually, I wouldn't have to sell my shares, the company would already be belly up and we wouldn't be having this conversation.
I agree whole heartedly that their have been many very encouraging signs lately but converting $2,000,000 worth of convertible notes into $4,000,000 worth of shares is not one of them.
PHK Price at posting:
9.0¢ Sentiment: Buy Disclosure: Held
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