Iofina Share Discussion Threads

[superg1] 12/11/2013 09:15

Has anyone got any idea re GDG.

I pay casual attention after a bear attack, with loads of research thrown in rubbishing the company, it was ticking back, but recently has taken off from 220 to 350 (all times highs), on the back of no real visible volume at all.

It's as though someone with deep pockets has taken 'action'.

I'll just watch that one just for curiosity, about what the H is going on.

[supreme mo] 12/11/2013 09:03

I can't believe some of the stuff I have just read. BoD should be the highest paid people in the company and their reward structure based in delivery. Those which are very concerned about this 'dilution' ask yourselves this - what would you rather have - BoD paid low salaries (as iof BoD are) but a few 100k options roughly around market price?? ORWould you rather no share options but really high salaries with no personal reward incentive to outperform??It's a no brainer imo.

[nashwan123] 12/11/2013 09:00

Soggy I agree with you. Directors pay is such a contentious issue with many companies and will never be properly regulated. In someways it is a form of legalised theft as directors reward themselves for failure or setting easy targets that the workforce would be pilloried for if they performed badly.
I gave up my shareholding in MONI after so many fundraisings via IIs that left PIs facing dilution everytime. We are expected to take it on the chin!

[mikealig] 12/11/2013 08:45

I think this RNS is good news. The big advantage they have over PIs is that they don't have to risk any of their own money here. Typically they will want the share price to double, take up their options, sell half and they then have free carry on the remaining half. Nice work if you can get it but we PIs won't be complaining when the share price doubles!

[ammons] 12/11/2013 08:39

Had the options been priced at 1p (or some other very low figure) it would bother me. They have been set at the current market price or around 10% below it. No big deal. Would have preferred to see the newbies spend some of their own cash buying in the market but perhaps they can't because they possess inside info re what's coming pretty soon........ :-)

[warmsun] 12/11/2013 08:35

If we get good news out soon, most won't give a damn about today's RNS...

iofra, if what you say is true (re Fay..and I have no reason to doubt you) then, if there was bad news to come, they wouldn't have issued the options today as they may have been able to grant the options at a lower price...

[iofra] 12/11/2013 08:32

They only make money if shareholder value increases - don't we all want that?

[soggy] 12/11/2013 08:30

iofra, I did add "or tick up" It only needs to rise a tiny amount and the size of those option would still allow a healthy profit.

Don't be obtuse, you know exactly what I'm saying. This is no incentive. If the price rises, and we all expect it will, it's free money. Clearly Chris Fay is unlikely to cash them in for a few pence. But he could. All I'm saying is, it's no incentive. I sincerely hope (as I'm sure does he) that there will come a day when he can cash them in for a whopping bonanza of free money - but the granting of them at this level is not much of a spur to him to achieve it.

[iofra] 12/11/2013 08:27

The option price was set the day they joined the company except for Fay.

[eeza] 12/11/2013 08:26

Get their options sorted before they release the news of production which should send the share price higher.
Seems a bit bent to me - sitting on price sensitive info & awarding yourself cheap options.
But there again - maybe the next news will be disappointing &send the share price down?

Time will tell.

[che7win] 12/11/2013 08:25

Options are a necessary incentive, however one could be cynical and say it's convenient the share price fell before this announcement (even though pricing is unrelated to the current price).

The incentive will be a higher share price, a pity there wasn't some EPS performance criteria or share price criteria for the options to be exercised.

However, management is aligned with shareholders now.

[iofra] 12/11/2013 08:24

Then explain to me your logic how Chris Fay, who has been granted options at £1.63, will make money if the share price stays where it is.

[soggy] 12/11/2013 08:20

No, not a good incentive. They make money even if the share price just stays where it is or ticks up.

If a company believes that a job deserves a certain remuneration, let them set the salary at that level. Options are usually used as a vehicle for incentivising - you perform better than expected, you get better than salary rewards.

This is unnecessary and dilutes everyone else, for what? So that some directors can be paid more for doing the same job.

I realise that in the larger scheme of things it's not a big deal, and I don't expect any real reaction by the market, and, that it's not uncommon - but there's little reason to say this is "good" from the perspective of the rest of us PIs.

[meadow2] 12/11/2013 08:15

cocorico - Reward it might be, but the option holders will need to see that the company gets the value of the share options in cash before they can take their reward. If future figures disappoint, they will not be able to take any rewards!

[iofra] 12/11/2013 08:14

The price they have to pay has been set around current levels so they only make a profit if the share price when they exercise is higher - a good incentive to get the share price as high as possible so they maximise profit.

[cocorico2009] 12/11/2013 08:00

definitely not a good RNS

reward without incentive, performance target or achievement

weakness in the share price still remains whilst there is a gap circa 149p, with any luck we will see it get filled sometime soon

[shonny] 12/11/2013 07:54

Another red day coming up. This share will have to get a wiggle on to achieve the rampers "£5 by Xmas" prediction of six months ago. Nearer £1 I reckon.

[peterz] 12/11/2013 07:44

Starfish...and so say all of us lol!

[skasher094] 12/11/2013 07:42

Have a thought that latest rns is maybe financial agreement
When joining company for hitting a specified target probably directly attributable to io3 up and running?
Anyone of same mind!

[starfishprime] 12/11/2013 07:37

Not quite news I wanted :(

[1madmarky] 12/11/2013 07:24

Umm, time to grant options. Not a bad thing and not excessive. Will give added motivation to deliver.

[festario] 12/11/2013 00:37

The clue to the share price fall was when comparisons with ASOS were flying around eh?Indeed Scrutable has much to answer for.

[escapetohome] 11/11/2013 23:56

I might add I am really happy with this consolidation phase. I dont want the share price ramped up and down again. A steady rise over time will be just fine- £ 2 by xmas would be beyond my wildest dreams.