Post by
Trademark11 on May 23, 2021 6:36am
ISCFA is correct
ISFCA is correct, it is niether bad nor good news.
A stock option is the FUTURE RIGHT to buy a specific number of shares of company stock at a pre-set price, known as the “exercise” or “strike price,” for a fixed period of time, usually following a predetermined waiting period, called the “vesting period. Most vesting periods for public companies span three to five years, with a certain percentage of options vesting (which means you’ve “earned” your shares, though you still need to purchase them). QIPT's units vest for three and two years for the Options and RSU's respectively.
NOTE:
The exercise price was set at Thursday's close of $8.48 ....not below present day value, which means that in order for the officers/grantees to realize a material monetary gain , their options need to be "in the money". The stock price must appreciate to make it worthwhile for recipients to exercise the units.....if the stock price has gone up, all investors benefit. This is Economics 101.
The vesting period (and strike price as above) PREVENTS immediate dumping by the officers/grantees and hense creates an incentivization for officers to do their jobs. Further, and more importantly, is that it allows QIPT management to incentivize officers of newly aquired companies to stick around post-acquisition.
Why is the latter so important?
If QIPT is going "national", as they keep hinting, they are going to be aquiring larger companies than in the past. It will be imperative for them to retain the quality management that comes with these aquired entities.
Summary:
There are arguments for both sides, good and bad. Does it dilute? Yes. Does it retain and incentivize? Yes
Net/net this is a wash IMO regardless of whether they released this on a Monday or Friday.
I will welcome any drop to support on the open Tuesday as an excellent add-on buying opportunity
My Opinion only. Do your own dd, heavily invested and active trader
Comment by
GrowthAndValue on May 23, 2021 10:04pm
You nailed it. My first stock house comment here. Been following this bullboard for a while now and I hear a lot of emotional and outrageous things. But you're absolutely correct. I like the company, I like where they're headed. I like the price. I think they are setting up for a busy 3-5 years, and I'm excited to be apart of it.