< As much sense as you make Reginald, at this juncture
I can't possibly see them even remotely entertaining what you are
proposing. They just don't "get it", IMHO.>
Joe, they get it. The problem is they are ignoring it. It is not up to them to get it, because they never will want to, the incentive is to push in the other direction because their jobs are at stake. Historically, whenever mgmt. underperforms and sits on top of valuable assets (cash flows, cash, patents, technology, etc.) they are candidates for a takeover. If a company such as MSFT or ORCL were to buy NOVL, they would attemtpt to maximize their investment. This means "get rid of the guys who destoryed the money ni the first place, no questions asked and no games played." Incumbent MGTM is quite aware of this. Management in many companies have a tendency to act selfishly in lieu of on behalf of the owners of the company when MGMT and ownership are not one and the same. This is exemplified in the case of NOVL when the mgmt destroyed approx. 50% of the owners shareholder value and then proceeded to implement a poison pill policy in order to prevent anyone else from creating shareholder value at the expense of incumbent mgmt's jobs.
It is the shareholders responsiblity to maximize shareholder value by excising the drain on shareholder value. Although they are not to runthe company, it is after all their money. Shareholder's have the right to request that the board entertain any FEASIBLE vlaue maximizing buyout offers that may be proffered. There is interest in acquiriing NOVL at these prices by entities that have the managerial acumen to significantly increase shareholder value. I have been approached by interested parties curious about the logic behind my NOVL analysis (I hope they don'tget mad at me for saying this on SI).
As I have said earlier, I will walk through an option pricing analysis (if the interetst is there) of NOVL's R&D programs that would unequivocably prove that a purchase at this price will enable to cunning mgmt. to double the stock price in the near term. |
