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Re: Rhetorical post# 1363

Saturday, 03/05/2016 7:25:28 PM

Saturday, March 05, 2016 7:25:28 PM

Post# of 6602
A little math on the numbers. I think they are more neutral than positive after further review.

"Employee Stock Option (right to buy) (2) 02/28/2024 Common Stock 400,000 $ 2.19 D
Employee Stock Option (right to buy) (3) 02/05/2025 Common Stock 200,000 $ 1.39 D"

So 400,000 times 2.19 = $876,000
and 200,000 times 1.39= $278,000

total $1,154,000 that Mr. Looby has the right to buy/convert (note that this is a lot more than the base salary of $275,000 Nathan was payed via the 8-K severance package details), so they want the option to either be able to keep Tom it would seem.

It's also important to note that 2024/2025 are the two dates the conversions are valid until.

So this means that they expect the minimum stock value to go from .92 cents up - to the price average of ~$1.92 by 2024/25ish --- this is 208% over 8 or 9 years. Working backwards using the Rule of 72, this equates to a rough doubling in about 8 or 9 years --- which means a gain of around %8 or 9% per year or about what the stock market does on average.

I think they are using stock market averages as a starting point for projecting what their stock will be worth. No indication that they will succeed or fail can be made based on these values alone.

As a side note, I think it's neat that a word coined by Peter Lynch, Tenbagger, is being used on this board. I think it's a good sign that the people on here both follow the leader of the most successful mutual fund in history in addition to this company in particular.
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