RE:RE:RE:Q1 FY2015 Valuation Updatelogical_thought wrote: Yes, revenue is indeed flat and that's why I'm now leaning towards urging the sale of the company. It looks as if the CEO would collect around $500,000 on his options if the price were in the .65/share range, but more importantly Mandelstam sits on the board with over 5.3 million shares (almost 19% of the company) and he's not collecting a fat salary. Just to be clear, I think that the current management team has done a fantastic job in righting the ship, but if the company can be sold up 100% within a short period of time to a strategic buyer it makes a lot more sense for the shareholders than embarking on a multi-year growth strategy that may or may not work. I'm hopeful that management and the board will be in agreement with this.
On the last CC, management implied that an acquisition was coming. This is not the type of move you make if you're thinking of selling your company in the near term.
I used to take comfort in Mandelstam's large stake. It's still a positive in my book, but it is greatly outweighed by the paltry equity ownership of current NEOs. Big salaries + no open-market purchases (despite very depressed stock price) + cheap options = red flag. What makes sense for shareholders and what makes sense for management are two different things.
Is anyone else confused by the changed to the BOD back in the late summer? Look into the busines record of the new director and ask, "why him?". Truly perplexing.