Fair question, Ray, "Why is it in (management's) best interest to see the stock go higher?"
In a word: ownership.
Dr. Grausz (who has resigned) owned nearly 6,000,000 shares according to the 10-K (it's on EDGAR, and every CIST owner should read it).
CEO, Bruce Galton owned 1,302,126 options in-the-money, and 109,341 out-of-the-money (at $.375). He has plenty of time, because his options will not expire until April, 2006 and November, 2005. He has a five year employment contract that runs through April, 1999.
Isidore Edelman owned 2,411,681 shares.
In a nutshell, a penny rise in the bid is worth $13,000 to Galton, and puts him one penny closer to more options at $.375. A penny rise is worth $24k to Edelman, and $60k to Grausz.
Also, each non-employee director gets 50,000 options for each year of service, up to 150,000 maximum. So they're probably focused more on a dime or a dollar rise in the bid, which would be worth $15,000 or $150k.
Edelman, Galton, and Grausz are certainly more motivated than any of us to see a high stock price. No one in this thread has yet appeared on the 5% owner registration list -:) |
