INTERNET--(esecurities.W)--June 14, 1999 - DBCC Announces Share Buyback.
Creating [Insider] Shareholder Value From The Bottom Of The Deck?
On the heels of option repricings*, insider dumping, bonuses...DBCC insiders announce a share buyback...as we have said before a share buyback may make sense for a cash cow Company in a mature industry...and simply never...never with a high-tech [Internet] company whose life simply, and by definition, depends upon strategic growth through strategic acquisition(s) [CSCO, YHOO, ...] ...a share buyback in this case will only serve to mask [insider] shareholder dilution and compromise DBCCs cash/working capital efficacy...it should be further pointed out that Mark Imperiale, President, DBCC, confirmed to esecurities corp. when directly confronted with this same issue** appx. two (2) years ago, that he realized and confirmed it was a big mistake.***
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*option repricings/issuances [~9-10/98] contemporaneous with alleged insider knowledge of MKTW S-1 IPO.
** ~$7 million used for share buybacks when shares outstanding were ~33M; at the end of the share buyback shares outstanding were ~33M and now ~35M...simply confirming share buybacks could not keep up with [insider]? dilution.
***Mark Imperiale indicated that their intent was to ingratiate the street with such a bold move and embrace DBCC with their support. DBCCs stock price predictably suffered from this move. DBCC insiders subsequently further approved insider bonuses, exorbitant Co-CEO salary to a ludicrous Co-CEO situation, insider dumping, option repricings/issuances in the face of losses, q2-q3 fiscal 99 flat revenues, significant and sustained shareholder value destruction v. S&P 500 quote.yahoo.com Said buyback is apparently out of Imperiale's control and allegedly coming from the Co-CEOs/CO-CEOs controlled entrenched Board. |
