Yes, Pat, that's what I'd like to see as well going forward. I listened to TERN's CC this AM on the replay. Quite a testy session, but rightfully so.
IMHO, the SEC, if not already, should be looking into the insider sales by the Rakib brothers and the CFO as the evidence of insider sales in and around the issuance of the cease & desist letter provides ample evidence to launch an investigation into potential insider trading violations.
I find inexculpatory Zaki's denial of insider sales subsequent to receipt of the letter, yet admittance to sales prior to its receipt. Zaki's own comments admit to a course of correspondence leading up to issuance of the formal letter, so the fact that he sold prior to its issuance does little to relieve him of any potential liability for insider trading.
The threshold issue on this matter is to determine whether the cease & desist letter, or more appropriately, the state of affairs between CableLabs and Terayon in January and February, as evidenced by the letter issued in early February, would have been sufficiently material to the investment community at that time for Terayon management to fully disclose the nature of these affairs prior to any insider selling.
Hopefully, when the irrational selling of Naz stocks ceases, and sound buying resumes, we'll see this divergence of TERN from the other cable equipment companies. The well-deserved distrust of TERN's management needs to be weighed against the prospects of the ongoing operation going forward. I think the more true assessment of this discounting will not be in today's market reaction, but over the longer term. I think some of the more analytical folks following TERN and the cable equipment industry in general are going to have to sift through all the noise generated over the past six months before coming to any concrete conclusions as to its impact upon TERN & the market's perception thereof going forward.
As it has been said, we live in interesting times. |
