Wavefront Technology Solutions Inc V.WEE.H

We have seen the bottom

[BenVest99]

Well, since a lot of people have crystal balls here, I will also try a prediction of my own based on the last news release.  

The Company also announces that it will file, in accordance with TSX Venture Exchange policy, a Summary Form disclosing the granting of an aggregate of 545,000 incentive stock options pursuant to the Wavefront's Stock Option Plan. The stock options are being issued to the directors of the Company. The options will be exercisable at
.97 per share, or other such other price as allowed by the TSX Venture Exchange,

Well, since directors got their fill of cheap options at
.97, I'll take that as they are confident that the share price won't go lower.  You could also view that as management no longer having any incentive to bring the price down to get their options as cheap as possible.

So, since management didn't meet expectations based on their global expansion plan and they didn't deliver on their soon to be signed deals, they get to have their option about $1.50 cheaper then what would have happen if they would have only been able to deliver contracts to keep investors confidence so that the share price would stay in the $2.50 range.  Down the road, should the company succeeds as we all expect, that.s a $850k additional bonus that they just awarded themselves for not having met expectations. I don't understand why they allow a company like WEE to play this game since the directors have a conflict of interest. On one hand, they are supposed to do everything they can to create value for share holders, but on the other hand, they have personal monetary incentives to make sure that the share price goes down in the short term. 

The TSX Venture Exchange policy should not allowed a company to issue options below the 52 week high so that directors don't have a conflict of interest based on the fact that they make more $$$ if the share price goes down in the short term as it is right now. So the only way to have appropriate governance is to have options priced higher in order to align directors interests with the ones of share holders.

I'm also basing that bottom theory on the fact that the share price of GCE hit its bottom this year when management issued themselves a tonne of options at around $4.50 after selling a boat load of stocks when the share price was at $8.50, about the 52 week high. These guys sure know how to trade!

On the positive side, the latest news showed that they have made yet another small step towards what will hopefully be a commercial success.

GLTA