Paid Inc. (OTC:PAYD) Storms The Charts

Surprisingly enough, Paid Inc. (OTC:PAYD) proved one of the biggest gainers yesterday as it wrapped up trading at $0.125 per share, up 79% from its previous close. Thus, PAYD finally put an end to its dismal recent performance, getting investors’ hopes up again. The latter, however, would be better off not jumping on the bandwagon right away as there are a couple of uncertainties about PAYD.

Despite being a regular SEC filer, PAYD has been keeping a low profile for quite a long time now as its latest press release (as published on the corporate website) dates from early-August on the occasion of the appointment of Austin Lewis as PAYD‘s new CEO. The company also announced favourable financial results on Nov. 21 and that’s about it.

As far as the company’s SEC filings are concerned, there has hardly been anything of interest apart from a couple of Form 4s, one of which has been submitted by Lewis himself. As it is, he is one of the guys who has been given the option to buy a total of 1 million shares of common PAYD stock at an exercise price of $0.048 per share. However, Lewis also has the right to buy an additional 5 million shares at $0.65, as well as yet another 5 million at $0.41 per share. In short, the newly elected CEO could potentially acquire up to 11 million shares of common stock within the next 10 years.

What matters most when dealing with stock options, though, is the opportunity to reap substantial profits by taking advantage of a favourable market conjuncture. At $0.125 per share, option holders will hardly make any steps towards exercising their rights. At least, those guys have rights. What about ordinary investors? Well, what they have is a substantial risk of being diluted any time. Bear that in mind when you decide on putting your money into PAYD.