Using a bit of a long bow to suggest that I believe that the price will 'easily exceed'. If you truly believe that yourself all good. It is this where you say:
"The options, where this discussion started, are fair remuneration given the strike price means they are "future performance" based. That is if the CEO doesn't deliver he gets zero"
If as you say the price will be far and beyond this, it is hardly an incentive now, is it? Someone is even claiming 17c will be the price. So even if the share price gets to a point that they are exercised they are essentially 'free' shares. He is paid - and paid well - already to do his job and while the company gets cash from conversion the regular Joes get diluted ever further which actually puts a brake on the share price - Why? Because issuing shares does not increase market cap, otherwise everyone would simply do that
So if one believes the SP will exceed the conversion point then you are correct that a 50% return over 3 years or so is a wise investment, and would be a no brainer to buy up now
Are you still buying? where is the volume, should be 100 million + being traded daily or at least weekly if this was a healthy stock with the number of shares on issue (Damn those liquidity creating traders!)
What do I believe then - Well, lets just say I have been on the fence for a while and will continue to stay there until at least 2 consecutive quarters of CF+ that is not just achieved because of R+D rebates, must be real. And as long as this company has bizarre true cult believers that hate car park attendants etc, and bullies anyone that has a cautionary word to say against claims 'will easily be 17c' then I will probably wait even longer
The other target I have is the company reaching 200m MC - Something that was a target the GOAT was tasked with achieving a few years ago now, and yet still gets shares and options like this for NOT doing so. Do you recall that?
Cheers,
Ballsup - by name and nature - NFA, IMO and as usual NFI
SPX Price at posting:
1.1¢ Sentiment: None Disclosure: Not Held
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