ESOS is normally spread over 5 years ( vesting period ) each year entitled to 20% . the ESOS pricing is given to their directors & management. this is different from free share(incentives ). ESOS must be paid by the staffs either on their own or thru share financing. You need to look at their vesting period and the exercise price against the market price
@taciturn - bro, this one is publicly available info la. if you have Windows 8 or 8.1, can use the Bing Finance app to search for Benalec - there is a fund movement monitor which is quite useful. BlackRock has a lot of funds la; setting aside their brand prestige, maybe its just the 'Baby Asian Dragon' mini-fund that is increasing its position ;)
Wow.... Up so much and so many new faces. Few weeks back, only few were here and the believers were constantly mocked. Kudos for all the especially savvyone for his info and taciturn for his analysis.
@Intuition: You asked us to take into consideration the fact that any exercised ESOS will dilute/affect the share price.
As of today (May 14, 2014), for Benalec's first ESOS series (January 2011-2016), there are up to 7,165,500 options outstanding (at an exercise price of RM1.06). 1,500,000 of those options belong to Vincent Leaw, meaning other employees of the group hold the remainder of up to 5,665,500 options.
I use the term "up to" as I do not know how many employees have quit since June 30, 2013 (when the last annual report was published - along with option details). The outstanding options may be lower than this figure but not higher.
On January 3, 2014, a second ESOS series of 600,000 options was granted to the 3 independent non-executive directors (200,000 each) at an exercise price of RM0.78. 100% of the options were vested the very next day. None of it has been exercised thus far.
On January 28, 2014, a third ESOS series of 16,000,000 options was granted to employees of the group (10% of the options went to Vincent Leaw), at an exercise price of RM0.79. (50% of the options were vested the very next day, the other 50% vests only on January 29, 2015).
As some of the options from the third ESOS series have been exercised, it currently consists of (at the moment) up to 7,660,000 outstanding options, 800,000 held by Vincent Leaw, and up to 6,860,000 by other employees.
Let's put it into simplistic terms, if every vested option (even the first series since they're technically in the money right now :p) were to be exercised tomorrow and sold on the open market that would come to:
Vincent Leaw's options: 1,500,000+800,000=2,300,000 Other employees/directors first+second+third series: 5,665,500+600,000+6,860,000=13,125,500
Total: up to 15,425,500 options
I think we can safely assume that Vincent Leaw would rather see his share price return to it's former glory (and more) than not. Hence I don't think he'd be exercising and dumping the shares. So I'd rather take the figure of up to 13,125,500 options.
As of today, Benalec has 808,402,500 shares paid up and listed.
The options come to a little less than 1.63% of the company's current paid up number of shares.
If you believe that number of shares will significantly affect the share price, I frankly wouldn't know what to say.
Respectfully, I'd like to state here that if I, as a non-professional investor can show this conclusion, surely you (as a research analyst) could have done a little bit of research before making such an erroneous statement.
taciturn, excellent write-up. @Intuition, as I said before, pls do simple check-up before u said something because you're professional research analyst and you interviewed key management personel. If the so called 'experts' in share research were so expert, they should invested for themself, not working for others, no offence though.
Intuiton, what taciturn said in his comments is absolutely correct. I suggest that you do some research before posting your comments. Don't just make statements based on intuition!
enjoyed all views of taci,intuition,kuku etc.have a say on ur facts, views even feelings but keep it inpersonal n brief. a company that create the most valuable asset ( land) cannot be much wrong,if those in control r transparent n accountable.happy investing,happy vesak to all.
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Posted by ST > 2014-05-14 16:57 | Report Abuse
i jus sold mine at 1.10...some profit first....shall check again on Friday!!!