Re: Insider Activity
in response to
by
posted on
Sep 21, 2010 04:25PM
Developing large acreage positions of unconventional and conventional oil and gas resources
Folks: It is increasingly obvious that many on this forum do not understand Stock Option Incentive programs. These are not like "buying" an option in the open market. Company's "set-a-side" x number of shares to make available to eligible employees, directors, and leadership of an organization. These folks are allocated a block of shares that vest on a schedule that is typically related to performance and time. That is obviously the case with this "Grant of Options". As of today.....and the previous few days.........with the grant price for these options being $0.17.........means the 1/3 block that vests immediately is absolutely worthless. So, for those receiving their grants in the first block, the stock options have no value-----zero. For them to return any value to the eligible holder of the stock option grant, the stock must trade above $0.17. This is actually a good sign.....is really a bit of optimism. It appears that they are getting ready to position key eligible holders of the options to make some money. This is more likely pointing to something positive. This is most likely pointing to an expected move in the price of the stock to the upside. Why? Right now the stock is trading below $0.17. For key employees to benefit from this option grant the stock must trade above this value. These Stock Options are not "given" to the grantee.......he/she has the right but not the obligation to transact (buy and sell or buy and retain) the purchase of shares in the number allocated to them for a price of $0.17. So...if emp x is granted 250,000 shares with 1/3 vesting immediately they have the right to buy 83,333 shares for $0.17. But wait......that still cost them $0.17 per share. So....in order to make any real return they will want the value of the shares to be well beyond $0.17. Hmmm....Looks like they may be planning to allow key employees to be positioned to make some real money...as will we.
Go Falcon