RE:To Friends in the 100 acre woodCurrent float : roughly 36,200, 000
all currently issued options 3,623,802
Hypothetical (but could be reality)
If BNE was paying .10/mth or 1.20/yr dividend that = 36,200,000 x $1.2 = $43,440,000 total payout/yr
if all options are exercised that : $1.20 divi/yr x 3,623,802 = $4,348,562/yr in additional divi outlay
$4,348,562 / 36, 200,000(current float est) = .12/share in dividends that are going to new shares from exercised options. even if you only own 10000 shares that's $1200/year of dividends out of your pocket every year. Literally out of your pocket for hard working employees.
what about an entriely possible $2/year dividend paid on exercised options? 3,623,802 options x 2 = $7,247,604/year in additional dividends paid by the company to hard workers. That's .20/ share/year out of your pocket based on today's float. again, even if you only have 10000 shares that's $2000/year out of your pocket all of a sudden. That'd be $166/mth you'd be paying to hard working employees directly out of your pocket. Then, new options are issued, and the cycle repeats.
What if oil skidded again but they could afford the $43440000.00 payout/year but not the new $47788562.00 with exercised options? it means your dividend will be cut even though you bought in when the float was 36200000 and the payout was 43440000.00/yr. The total payout would still be 43440000 but your dividend will be reduced. And somehow dilution is ok with you?
What's the conclusion? options are dilutive small float or not. I call bull to anyone that says this is ok with them. If anyone says this is ok with them they're letting their pride get in the way of what's obvious but that's human nature to double down when they're wrong. I ask the same question again, would you write a cheque for $166 every month and send it off to these hard working employees you gush over? Do you want to pay directly or indirectly? because one way or another you're gonna pay.
We are all here to hopefully make money not to help someone else buy a new Lambo with our dollars.