3 replies to this topic

[da_cheif]

VLNC insiders climbing aboard
http://ir.valence.co...=1011438-07-527

http://ir.valence.co...=1011438-07-530

[...]

more insider buys

Roberts and Williams are insiders, but nobody bought anything. They were granted options totalling 125,000 shares at yesterday's closing price of $1.49. Neither one of these guys owns a single share outright.

The options may or may not ever be exercised. If they are, they will cause a dilution of the equity of existing shareholders of a bit over 1/10th of 1%.

This is potential future compensation (wholely dependent on the share price) of insiders using shareholders' money, not insiders digging into their own pockets to buy shares.

The VLNC chart looks pretty decent over the last 6 months, but this event is no reason to buy it.

[da_cheif]

ur rite......i missed that......so....i guess they got to get the price up eh.......

Edited by da_cheif, 09 October 2007 - 08:35 PM.

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they got to get the price up eh

One way or another.


Seriously, I have no problem with incentive compensation in the form of options, as long as it's reasonable, reasonable meaning that which is required to attract or retain the particular talent as dictated by executive employment market conditions prevailing at the time. That's as opposed to the looting of shareholder equity with outrageous grants that bear no reasonable relationship to the possible value which may be contributed to the enterprise by the grantee or to what would be required to attract equal replacement talent. Eisner comes to mind.

If VLNC goes to $11.49, these two guys will have equity in their options of $500K and $750K, not an outlandish sum at all.

They both may be relatively new to VLNC, it was the first grant in both cases.