Dennis: Please allow me to correct the record on the previous reply. My recall is accurate on the context, but the numbers aren't right.
The options were at a strike price of 23.5 cents according to one of my early 1998 posts - - and at the time the stock was in the thirties and seemingly headed north. The options given to Larson totalled 18,000,000 shares. I don't recall the other amounts, but they were less on a per-person basis.
All of this was hidden deep in an SEC filing at the time. It received some press comment and, in my humble opinion, contributed to the nearly-immediate reversal in price. In hindsight, that now seems to have been inevitable anyway, but the equity dilution plopped on the back of stockholders that had suffered a decline from the multi-dollar levels of the previous year didn't pass my smell test then, and even less so now.
I believe the main posts were put up on the Repap Yahoo site - - that's now gone with the delisting by NASDAQ.
So, to sum up the correction, the depressant effect of the options will show up if and when the price gets over 20 cents, not 14. Apologies. Again, if anyone has a better take on this, please add it to the dialogue. PT |
