When all is said and Rights..
July 24, 2012 § Leave a comment
Hey BIll, am a little confused with johnboy’s explay-nation o’ this bonus deal thingy..
Did you guys kick an expected rights issue into touch.? If so, why so?
Bonuses cost, RI only dilutes a share class some small amount. Chances are the market price movement over next few years would cover this anyway.
RI has the distinct advantage to my way of thinking of rewarding stockholders with more stock (or options). For holding. So, for instance, buyers have to do the ‘hard yards’ of holding stock to find their rewards. [ BTW: I seem to recall Ron Brierley making his invest vehicle pretty rich on annual RI when he was there.. and my oh my did the ladies queue for hours to tell him what a clever man he was at board meetings! ]
Besides, those acquisitive a goer would be accumulating from go.. wouldn’t they? Oh waitta mo, mebbe the launchers don’t want this.. going for lite holdings through diversity is the thing..hah?
Anyways, I thought I’d let you know Chris Cook’s view, too. These days he yammers about the post-industrialization zoom (to the bottom), oil having been the playboy as it were these past several years as well as aid building the 300 year industrialization bubble.
With LIBOR killing most of the schemers dead on the water the talk is of Enron-type prepays. Not post anythings. An out-take RI could be a neat fix.. assuming ‘bonus’ can be made mean something better..