RE:RE:RE:NTG Clarity Networks flummoxed by falling share price They are exercising their old options and selling them slowly. They have been waiting 10 years for this turnaround and been supporting the company all the way (look at 10 year chart). It would be great if they never sold anything as it can affect they way some shareholders see things, but I find it hard to blame them for the recent dip. It has been frustrating for all to see the dip and undervaluing of the stock. Although I am confident in the company direction and think this period will look small in time, doesn't mean that I enjoyed see my share value drop by $45k either from the recent high.
They own about 25% of outstanding shares. When the next huge quarter comes up in January, they will probably sell a few more too of exercised options with the rise in share price, while maintaining the same huge percentage of the company. Alot of the traders on this exchange jump around from these plays, They see it just churning around 40, they move on to faster play. Alot of them then jump back in when it's on the move again. I would expect some of them that sold will be back as the next quarterly report comes closer. There will be new money coming in for sure after the report, showing 3 substantial quarters in a row, with a PE muliple extremely low. Everyone will and should make their choices after good DD.
As for the point of putting money in they just did in the summer. Management put money in the debenture capital raise just this summer. Here is the disclosure with some more detail on the debentures:
MI 61-101 Additional Disclosure
Pursuant to the transaction, Ashraf Zaghloul, the Chief Executive Officer and a director of the
Company, subscribed for convertible debentures in the principal amount of $100,000, Kristine
Lewis, the President of the Company, subscribed for convertible debentures in the principal
amount of $100,000, and Adel Zaghloul, a director of the Company, subscribed for
convertible debentures in the principal amount of $50,000.
The transaction did not affect the percentage of the total outstanding Common Shares of the
Company held by the related parties; however, if all issued debentures were converted into
Common Shares, the percentage of the total outstanding common shares would decrease from
15.8% to 15.3% in the case of Ashraf Zaghloul, (ii) increase from 7.5% to 7.9% in the case of
Kristine Lewis and (iii) increase from 2.4% to 2.7% in the case of Adel Zaghloul.
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Also they have let some of their options expire in the last few years, and one can just look at the last quarterly report on page 45 to get a true picture of current and past options. One can then make their own determination.
Cheers
Presclubs