Claren Energy Corp T.CEN

SAR's and ISO's

[mjh9413]

I am long, like the company a lot for its operational successes and startegy but the subject are really beginning to tick me off. They have a $77MMM liab last qtr to pay out existing SAR's (larger than their tax commitment!) and now they can determine an undefined 'fair market value' and simply pay themseleves the difference between this and the option grant price to pay cash from the company. Okay, so they don't issue shares but then the market would normally pay the differential when the option purchase goes into the treasury. We all know as well that these insiders are pretty good at timing and pricing options that are very accretive, risk-free rewards in any event. These guys might be good but they don't deserve superprofits at other shareholders' expense.