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TOPIC: As expected- Option Rewards Staggering

As expected- Option Rewards Staggering 11 Mar 2017 01:13 #8990

  • fas
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But so far without evidence that such staggering rewards are truly well earned,,:whistle:

Hedrick- 130.200 shares at 1,55$
the rest of the Management team - all 42.000- i.e. Harris, Marino, Hayden and Girao.

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Board moderator and Site-owner. I still regret the day I started analysing the prospects of MacroPore (now Cytori) back in 2004- a left-over from the tech-bubble at that time from the century change in my portfolio- and became addicted to Cytori´s fat cell technology. :cry:

As expected- Option Rewards Staggering 11 Mar 2017 03:45 #8991

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Awarded at the lowest close for the week and 2 cents above the lowest close of 2017

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As expected- Option Rewards Staggering 11 Mar 2017 08:04 #8993

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The rewards are announced AH Friday, but dated 3/8/2017 -when the PPS is 1.55 or so (lowest of the week and at par with the PPS for the BOD reward, 3 weeks back).

I believe these rewards are the biggest in recent memory, while the most of the past rewards have virtually become worthless.

If the company has really turned around with 1. success in the clinics and in Japanese sales and marketing (forget about EU, with only one full time) and 2. reasonable strategy to manage the books (not toxic financing to cause periodic catastrophic drops in PPS) and other matters, maybe the rewards are fair.

If the ship has good sailing from here on, I truely believe that all these managers will become millionaires (as in many other successful small biotechs).

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As expected- Option Rewards Staggering 11 Mar 2017 09:05 #8994

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"If the ship has good sailing from here on, I truely believe that all these managers will become millionaires (as in many other successful small biotechs)."

OK with me franshei as long as they take us along for the ride.

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As expected- Option Rewards Staggering 11 Mar 2017 10:59 #8996

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The theory that the BOD was waiting until Hedrick signed a partnership deal before issuing this year's stock options is now out the window. Once again. stock performance was not part of the criteria for receiving new stock option awards. In fact, there is a reverse correlation. I went back only to 1/31/2013 and have adjusted the stock option numbers and strikes to account for the 1 for 15 reverse split. Here is Hedrick's stock option history from this date:

1/31/2013 12,222 shares Price $41.10
1/31/2013 6,111 shares Price $75.00
4/11/2014 19,000 shares Price $35.70
8/21/2014 6,667 shares Price $21.00
1/30/2015 16,000 shares Price $ 7.20
1/04/2016 55,614 shares Price $ 2.81
3/08/2017 130,200 shares Price $ 1.55

Hedrick owns 83,133 shares which he purchased in the open market at one time or another.

If the stock were to go to $45 ($3.00 pre-split and a good average cost for most on this board), Hedrick would have $12,733,815 pre-tax. Not exactly a bio-tech home run! But considering the stockholders, who have paid all of the company's expenses including a generous cash salary and bonus, only get back to even, I would say Hedrick will do quite well compared to the investors.

The only way investors can make as much of a return as the management, is to buy 15 times more shares now than you had pre-split and then hope Hedrick can get the stock back to $45 ($3.00).
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As expected- Option Rewards Staggering 11 Mar 2017 13:33 #8997

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Thanks DOV-

Was thinking about putting the rewards also in "historical perspective", but glad you did it before me.

Key here is your statement :

Once again. stock performance was not part of the criteria for receiving new stock option awards. In fact, there is a reverse correlation


Pretty sad, but reality. Probably explains that in the Companies Objectives and Goals, the Shareholder is not mentioned anywhere.

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Board moderator and Site-owner. I still regret the day I started analysing the prospects of MacroPore (now Cytori) back in 2004- a left-over from the tech-bubble at that time from the century change in my portfolio- and became addicted to Cytori´s fat cell technology. :cry:

As expected- Option Rewards Staggering 12 Mar 2017 12:58 #8998

  • waddlingwillbologni
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And to return this to the partnership discussion: does anyone think that potential partners aren't looking at this? That they're not looking at the fact that on top of undeserved options, 600k per year of their partnership money will be going to a CEO who doesn't even know the ins-and-outs of his company, who clearly is not a leader, who has not delivered on promises but has underperformed repetitively while deceiving the public, etc.? It's actually nervy that he seeks money/partnerships to pay himself what he pays himself while his terrible track record trails him. And if you think savvy potential partners don't see this (just like I do, just like you should), I'm suggesting you're highly mistaking.

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