RE: Shares/Share Price5 Jan 2024 15:50
> The general role of thumb under the circumstances is that they would not be allowed to sell them for at least one year.
The shares of their last grant vest over the next three years iirc.
> What I'm struggling to understand is if there are a few of us here with a few hundred k of shares and we've all been averaging down. Why has this SP remained stagnant?
This is not easy to answer. There's many reason why the share price would go down. One of them is good old dilution. Over the past years, said management has had many grants. I don't know how big those were but the last two make up 15% of the companies shared issued.
Now, as these shares vest, they are offered to the market and somebody, don't ask me who, buys them. Bear in mind, that those shares offered are already going to be cheaper. Why? Because that's how shares work of course. The more shares there are, the less a single share is worth.
In other words: Whenever one of us averages down, we are, among other things, paying for these grants/bonuses. Literally paying for part of management's salaries which is why these particularly large grants are a thorn in my eye.
Another big factor then is, of course, demand and supply. Simple as that. If people sell shares, they name a price, and they'll always ask for as much as they can. However, they can only ask for so much somebody is willing to pay. A simple market.
> Do we think these shares are kept artificially low for some reason?
Maybe..? If I was management and had some good news to share, then I'd wait until I have my grants - for example. I am not accusing current management of doing that, because it is illegal, but there is some control that it in the grey zone.
The BESS planning committe meets on Wednesday, 10th January, 2024 10.00 am. Just a few days after management has granted themselves a huge chunk of shares.
Coincidence? Maybe? Did they have any control or say over this? I don't know. Also maybe.
But even if not: The company has performed abysmal on the stock market so far. Leaving every single one deep red. So.. is it appropriate to grant management a huge amount of shares in this case? Based on what performance? Did we see an increment in revenue (not couting the one-time payment of course)? Did we see any value increment? All we saw was selling assets. ATES, Uskmouth..
Did they do a good job? I don't know. Maybe. Do I feel that the grant last year should suffice? Absolutely. Am I convinced that another big grant is appropriate? Not so much.. all I am afraid now is that they sell their options the moment they vest because it's not unlikely that SAE might see a rise in valuation.
Again: It is us existing investors who pay for these grants. It is our money. Yours and mine. It is my opinion, that we have paid enough already and that it's time that we see some returns, or at least break even, before management grants themselves new shares at the (almost) lowest price ever recorded in th
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