RE: insiders get 2 million options at 8 centsOver and over again we get this argument that management’sstrategy is to keep the pps low so they get cheap options. Let’s just look at how this has been workingfor them. Remember that low pricedoptions have no value if the pps never gets higher than the exerciseprice. Let’s look at a couple ofexamples:
Norbert Dawalibi
Norbert currently has 3,010,000 options. 570,000 are in the money (8 cents). The rest have various exercise prices from 20cents to 91 cents. In fact 1,500,000 areat 91 cents and expire June 1 next year.
Norbert also owns 2,288,167 shares which he bought on theopen market at an average price of (roughly) 30 cents.
How is this “strategy” working for Norbert?
Wolf Bielas
Wolf has 200,000 options at 23 cents and 225,000 at 8 cents. He also owns 10,000,000 shares from hisinitial deal with the company and another (approximately) 3.7 million purchasedat slightly less than 15 cents a piece.
How is this “strategy” working for Wolf?
Can we put this old chestnut to bed please!
Piper