Option white paper
I have quickly reviewed the white paper and it is a great historical document about options. But here is what I get out of it.
1. Yes, JB will have to expense them when they are exercised (that is the way I read it), so it is to JB's benefit to keep the options under water so that we never exercise them and they don't have to expense them.
2. Only the Pre IPO guys will ever make any money in in the options.
3. The company doesn't plan to do anything to fix the current problem. Yes they can cancel them and reissue them at a new strike price that puts the options above water, but then we might exercise them and then JB would have to expense them. Net result is They won't do anything to fix them. (it is my understanding that SWA fixed their pilot stock options in their newest contract to bring their pilots options above water)
I can see that if our stock ever recovers enough to get our options above water you can expect a massive exodus from options as eveyone tries to get something out of them before the stock goes down again.
Just another example of the values being used only when it suites them. The care only when it helps them, not us.
Just my opinion....
FNG