Re: Insider Activity / kyskybolt
in response to
by
posted on
Sep 22, 2010 11:58AM
Developing large acreage positions of unconventional and conventional oil and gas resources
It appears that one does not understand the "incentive" side of the equation. The incentive is the low entry price at issuance of the option.....that is the grantee's cost of the share when said grantee decides to exersize the granted option. They want the price to go up, as do we as shareholders, so the value of the grant when exersized is, well, valuable. Until said granted option is exersized it has absolutely no value to the grantee as their basis is $0.17. It will cost the grantee that much to exersize their granted option...per share. This does nothing to the number of shares authorized or issed today or tomorrow........It is quite interesting how this such simple matter is so confusing to so many.Why this is a good sign...whether this "granting" of stock options happend yesterday...two years ago.....or whenever......this type of move is only worthwhile to the grantee if the price is above the grant basis. Grantees may have a number of grants with varying basis for an exersize price....it really is irrelavant until the price of the stock is above the basis for exersize...they have zero value....they are worthless to exersize unless the stock if above that point. Companies often provide/grant options when they expect much improved operating returns so emps, key staff, etc. etc are able to participate in the return......Maybe Falcon is about to see the fruits of their effort....maybe not.......but since we are all idiots isn't it better to be an idiot with a positive outlook? Helps this idiot sleep better at night thinking that my stupid investment has a chance........Hmmm
It is also quite fascinating that folks have such disdain for something they elected to buy; or, spend their valuable time bashing something they do not own. For those folks that simply bash to get their jollies do us idiots....as you obviously think we are.... a favor and let us be idiots on our own. Perhaps we win, perhaps we lose. As idiots........it is our choice to be that. Time will tell whether we are in fact what you think us to be.......just let it go.