XYZ it goes beyond disgust.
Chambers should be under SEC investigation.
Not only did he resell inventory that he wrote off, he actually stated that he would NOT do that, and the inventory would be destroyed.
That to me is totally CRIMINAL and he was never called on it.
ok... so I understand.
What would you expect him to do.
For some reason the inventory was not destroyed. Then it was sold.
The immediate question is.
Did CISCO take a deduction (write-off) for said inventory, which subsequently was sold (I believe if the applied tax basis is zero, then no one gets hurt --i think). I do not know the specific laws that may be applicable.
Now... I need to understand why is it criminal. It may not be completely ethical, given that he expressed something and later he changed his mind, BUT most importantly, he did not hurt the company. Nor, he took the inventory and sold it by and for himself. It was on behalf and for the benefit of Crisco.
The above, is what I believe it has happened. If so, what is to investigate ? A ceo took a write-off on inventory he thought at the time to be obsolete... later, conditions changed and he was able to sell it.
Is there a law against NOT having foreseen market conditions ?
Now... that problem may be different than the fact that the market is pricing Crisco at a level that does not warrant to be priced at ? that may be so, but Chambers has not much power over the market. he may try to influence it, but you can not blame him for the market to do... well... er... x, y, or z things ... or ?
Again, I am not a particular fan of either Crisco or Chambers, But I would like to understand why Chambers should be investigated ? specifically, what would be the charge ?
I mean it is not as though he created 16 foreign trusts to hide the eventual beneficiary of sales of written off inventory off form the Crisco's warehouses...
nor.... expressly stated that "x"number of billions of $$$ were, in stead of capital investment, in fact they were plain vanilla expenses....
I repeat... my understanding of the job of a ceo is to maximize shareholder's value. Crisco, at some point considered certain inventory obsolete and wrote it off. Later, he found he could sellit and did. All this has been disclosed... yes ? no ?
So now we are all p/o because crisco... partly thanks to such sales, was able to come up with abc quarterly number... so now what ? did Chambers wronged shareholders ??
[did he hurt chorts ? ]
or
[the market <participants> did not foresee this]
??? |
