RE:RE:RE:To Friends in the 100 acre woodsnowshoedb wrote: What about the 3.6 million options exercised at market price and then put to work in the business? If the additional money let's call it $25 million is used to pay down debt…
It would not be $25MM as you suggest. I think you should read about options because it seems clear you do not understand them.
For example, there are 2261600 options issued at 2.56. As of today's closing of $8.20, these are called in the money options because they can purchase all of these shares, which would be new and dilutive shares, at a cost of 2261600 x $2.56 = $5,789,696 in to the company. The hard working employee(s) that were issued these options, could then sell them in to the market. At today's closing price of $8.20/sh these hard working employees, that deserve these options while common peasant irrelevant shareholders wait and are beat down on an almost daily basis, would net 8.20-2.56 = $5.64/share or net $12,755,424 (5.64 x 2261600) in their pockets not yours. All of those new shares would also need to serviced by dividends (if it ever happens) to whomever owned them while your ownership in the company and dividends received are reduced due to this dilution. I've had options in past and didn't even need to outlay any cash to exercise them. My broker at the time would sell them as soon as I exercised, They'd "buy' them then sell immediately and effectively provide me with a short term "bridge" loan until the sale was settled, they'd collect their commission and we were all happy. There was zero risk to me, the hard working employee.
So, when the share price has taken such a beating for years, do you really believe that options should be issued for such poor performance while you suffer? Have you made $5.64 here on paper? Maybe. But you had to risk your own capital to do it. Options are zero risk to the receiver other than they could end up out of the money but that's it. Where's your reward for risk?
The only reason people are apathetic and accept options issuance for poor performance is because it is not real cash coming directly from your hands even though the same money is coming from your hands but just in a different route. If you literally had to reach in to your wallet and give hardworking employees cash from your wallet you wouldn't be so apathetic. An example of this would be credit and debit cards. Since cash is not directly changing hands (but it is indirectly) people will tap tap tap all day long. Same principle.