Altaf, I thought your analysis posted elsewhere yesterday would be of interest here, since it explains a couple of actions:
"A Trimble soap-opera today (assume Co and its relation to GPS interests you)
... PR this morning announced a sudden resignation of Charles Trimble with
interim successor (indicating abruptness of call) and complete withdrawal of
C.T from the company. With this, they also announced a 1.1 million share
buy-back which countered an earlier disclosure that they would NOT buy-back
any shares. Number of shares is noteworthy because: a) the size represents
unusually large portion of shares outstanding (1.1/22 mil) and; b) amount
roughly equals the number of excersizable options presently held by C.T and
hence would calculatingly balance dilution resulting from their execution
(indicating reaction to some type of brinkmanship, i.e., "fire me and I'll
exersize options and liquidate shares to your detriment"). BTW, head of
investor relations takes a vacation (talk about vacating the weather station
during a storm).
"The soap-opera continues ... In the afternoon another release is issued
stating C.T. will remain as Chairman and usher in a new CEO. Buy-back is
also revoked.
"Meanwhile, stock remains with recent price range and volume is below average
(in a market-wide, low volume day) despite, you would think, the dramatic
release. Obviously something went down with two likely causal scenarios
synthesized from various sources and IMO: 1) board wants to sell the
company (maybe with offer on hand) and C.T. is opposed to the point of
threatening his withdrawal feeling that he is integral; Board calls his
bluff and he capitulates. 2) Board resolves to bring in professional and
experienced CEO (C.T., though regarded as great engineer but poor
businessman, has an abysmal record in managing the company with analysts and
shareholders both recently petitioning for his removal as CEO. Anyhow, C.T.
stands opposed (same as #1) and then capitulates."
|
