options, page-2

Lopez

I hope you won't court martial me as I did promise solidarity but in regard to the recent issue of over two million options I must break ranks and say that CST had a temporary loss of sanity,it would not have taken a genius to have worked out that the CST share price was likely to go well beyond the excercise price of $2.50 in a short space of time,granted no one could have forecast such a rapid rise so soon after they were issued but even some of the mob punters have managed to work out that $3 was highly likely in just a few months or less

The most disappointing thing,apart from considerable dilution for existing shareholders is it appears no one is giving management sound advice as to the likely value of the company over the next few years (perhaps they don't expect high growth?),I've been around a long time but seldom have I witnessed such inept application of intelligence regarding the issue of options,previous attempts were a debacle and I had hoped that lessons had been learnt but it appears not

Looking on the brighter side it is not by any means a fatal mistake,most if not all mistakes by this company have been the result of naivity rather than incompetence which is to be expected from such a young management team.They had the good sense to appoint one experienced senior perhaps two might be in order?