Replies to post #7250 on First American Scientific Corp. (fka FASC)

[Jagman]

rob65737: I do not think TRCPA will accept any negative information regarding options. I'm pretty sure he believes the newly issued options (by managenment to themselves) means the pps is going to go up. You may get a "LOL" and told to read your post again. : ))

[TRCPA]

RobJ......

You've made some sweeping assumptions there that I don't agree with.

The options are offered at varying times and at varying prices, and have varying terms in which they can be exercised. They can go up and down, based on the latest market conditions. You can also find the exercise prices on the SEC reports. Those granted the options can determine for themselves which to exercise.....or not exercise for that matter. If buying the options at preferable prices are the only compensation that is received for salary or services, it probably indicates at least some belief in the company.

They are offered at these preferable prices as an incentive to remain with the company, as are options with any company. In the case of these small companies with limited employees, it is a prudent way to keep key help. Of course, exercising the options creates additional dilution.....as it does more cash for the company/chances for a more stable company.

So there is a trade-off for the shareholders. It is a double-edged sword as you say, but doesnt necessarily severely compromise current shareholders, based on the above.