Payment Data Systems Inc (PYDS)

[nealg]

Mermelstein,

You are right about the 8 million shares. They are options and vest over 10 years or when he leaves the company.

Even though they are worthless right now, it is a pretty nice award. But it is also nice that it occurred at the upper range of the trading for the stock over the past year.

If PYDS was fully diluted with all the options outstanding, how many shares would there be? Even if there would be around 200 million, 8 million shares is another 4% of the company. With a 200 million figure, that would put Hoch's ownership at about 20% so he does have a big stake in this company succeeding. I just wish I could get past his insider selling, even though I know he has every right to diversify his holdings, and the last time revenues and earnings imploded without a warning. So I will be sitting with my present shares for now and watch and see what happens here, especially to see the results of the merger.

Good luck out there.