Hi BigpeteIt may have another motivation, but if I'm right, I...

Hi Bigpete

It may have another motivation, but if I'm right, I would not expect too much more shorting related to this.

Check out the Short positions on ASIC on 16th & 19th December last year. Short position increased by 4,892,499. At the averaged price for the 19th of around 1.17, this amounts to approximately $ $5,724,224 realized from the sale. Coincidentally, on the 19th, directors and management exercised 19,579,000 options, for a total outlay of $5,070,000.

Possibly the short position was part of the mechanism directors and management utilized to raise funds for options conversion. I would be disappointed if this were the case, even if the position was established by a bank who loaned the funds because it is tantamount to a director shorting the shares in his own company. Am I the only one who sees a problem here?

So, it's possible that the SP action on the Friday just gone has a similar genesis. However, since resolution 8 (I think), was passed at the AGM, there should be no such need to use the financing mechanism I have postulated as resolution 8 related to an optional no cash exercise mechanism for existing options. The mechanism results in less shares being issued upon option conversion but does not require the directors or management to come up with the cash, hence no financing required. Hopefully directors and management have chosen this path as it means they will not have a big loan hanging over their heads and also less dilution for you and me.

Having said all that, if the directors and management have chosen to finance their option conversions, it will be because they wanted to convert every last option into an FPO. This then speaks mightily for their confidence in the company going forward.

It will be interesting to discover the ASIC short position for last Friday, which should be available on this coming Friday. If it has increased by the million or so you mention, then the scenario I have outlined is at least possible.

One must remember that at some point this short position will have to be covered. This, I think, will introduce some upside impetus to the SP. Could be quite exciting actually.

Although I am adamantly opposed to the nature of Employee Share Options Schemes, and the inherent implications of greed, and also the mechanisms used to finance these schemes, and the obvious ongoing dilution of shareholder funds, I see the situation with Buru shares as being decidedly positive with respect to the share price going forward.

There is much to be optimistic about over the next 6 to 12 months.

Ok. Again, telling it as I see it. Could be wrong. No more words on this from me.

Phil