GA & HR, you guys seem to agree...
I'm glad to see that we can express our opinions & facts without it becoming a personal war. Let's keep it up...
On that note, I have to address both your comments about the salaries.
01. I agree with both of you that running a company is a 7 day a week, 24 hr a day job and is deserving of a good salary. I too, like both of you, run my own business, and I too, like both of you make over 100k. My business, (and I believe both of yours) are sucessful and profitable and we are earning our salaries. I absolutly agree with GA when he stated:
"I believe in good management salaries because of my experience why hire a novice to do an experts job. I dang sure would not run a corporate for less than 150K I will tell you that".
But I disagree that AGTI management is is earning and deserving of their salaries. I base this opinion on their track record and the company's financial statements. We as investors need to see better results for our money. Shouldn't we have the best management our money can buy??? I have no problem with 500k of more if the management is producing profits. But I don't think that the current management team is worth the results we investors have received. I can tell you one thing for sure. These guys would NEVER last if they were working for me. You earn your salary by producing results, or your gone.... Technicly, these guys do work for me, and YOU, as WE are the shareholders. When you defended their salaries, you did so by comparing them to yourself, which is not fair because you guys are involved in profitable businesses (I think that's what you said).
Anyway, we may never agree on this topic but those who follow this thread should at least hear all sides of it and since I brought it up I had to respond.
02. I was wrong when I stated Silzer's salary. I appologize. I went back to the SEC filings and re-read them. They were HIGHER than I thought. Here is what it stated (edited):
Robert C. Silzer, Sr. will be paid a salary of $225,000 in 1997, $275,000 in 1998, $325,000 in 1999 and $375,000 in 2000. In addition, Robert C. Silzer, Sr. is eligible to receive an
annual bonus in an amount equal to 5% of the net income of the Company and its
subsidiaries (the Company and its subsidiaries did not have any net income in
1996). Robert C. Silzer, Sr. received a signing bonus of 250,000 shares of
Common Stock. Robert C. Silzer, Sr. was also paid an automobile allowance of
$800 per month in 1995 and $900 per month in 1996 and will be paid an additional
$100 per month for each calendar year of the term of the Silzer Sr. Employment
Agreement.
Robert C. Silzer, Sr., the Chairman, Chief Executive Officer and a
Director of the Company, borrowed an aggregate principal amount of $597,800 from
the Company, pursuant to (i) a promissory note in the principal amount of
$375,000 dated January 30, 1996 and due on or before January 29, 2001, (ii) a
promissory note in the amount of $150,000 dated January 18, 1996 and due on or
before January 17, 2001, (iii) a promissory note in the principal amount of
$72,800 dated January 2, 1996 and due on or before January 17, 2001 (the "Silzer
Notes"). Interest is paid monthly on the Silzer Notes at the United States Base
Rate as may be set from time to time. At March 31, 1997, the United States Base
Rate was eight and one-half percent (8 1/2%).
Mr. Lakhani will be paid a salary of $175,000 in 1997, $225,000 in 1998, $275,000 in
1999 and $325,000 in 2000. In addition, Mr. Lakhani is eligible to receive an
annual bonus in an amount equal to 3.5% of the net income of the Company and its
subsidiaries (the Company and its subsidiaries did not have any net income in
1996). Mr. Lakhani received a signing bonus of 200,000 shares of Common Stock.
Mr. Lakhani was also paid an automobile allowance of $700 per month in 1995 and
$800 per month in 1996 and will be paid an additional $100 per month for each
calendar year of the term of the Lakhani Employment Agreement.
Firoz Lakhani, the President, Chief Operating Officer, Secretary and a
Director of the Company, borrowed an aggregate principal amount of $444,000 from
the Company, pursuant to (i) a promissory note in the principal amount of
$250,000 dated January 30, 1996 and due on or before January 29, 2001, (ii) a
promissory note in the principal amount of $90,000 dated January 18, 1996 and
due on or before January 18, 2001 and (iii) a promissory note in the principal
amount of $104,000 dated January 3, 1996 and due on or before January 2, 2001
(the "Lakhani Notes"). Interest is paid monthly on the Lakhani Notes at the
United States Base Rate as may be set from time to time. At March 31, 1997, the
United States Base Rate was eight and one-half percent (8 1/2%).
03. As far as the merger is concerned, I'm disappointed. Sure, if the deal stinks, don't do it. But it truly could have been a great thing for AGTI, for all the reasons they tried to do it in the first place. I'm shocked and very happy that it did not cause the stock to tank. In the past, news of another deal not going through would have caused a sell off, so MAYBE the stock is really at a final bottom. If it holds it should prove to be a good entry for new investors.
04. In spite of my feelings about management, I feel the STOCK can still go up because of the growth in Electronic Bingo overall. This industry is in it's infancy and AGTI is a GREAT speculation stock at these prices. It would not surprise me at all if someone like IGT came along someday and bought them out. IGT seems to buy or form partnerships with any company that has good Gaming Technology and that's where AGTI shines. Just imagine their products managed by a company like IGT... We would all be RICH!!!
NOTE: I AM NOT TRYING TO START A RUMOR, AND I HAVE NEVER HEARD A WORD ABOUT IT HAPPENING!!!!
I just think it is a possibility and a welcome one at that.
AR |
