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Strategies & Market Trends : Value Investing

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To: Jurgis Bekepuris who wrote (41885)3/21/2011 11:32:03 AM
From: Madharry2 Recommendations  Read Replies (1) of 78599
 
i think you are battling windmills. us small fry dont count for diddly squat as far as board representation or executive compensation unless there is a proxy battle. i look at my proxy statements now and then throw them away. what I do do is send furious emails to the ceo's office when i am pissed off enough and complain on these boards. that rarely works but it makes me feel better. i believe the media reads these boards sometimes will pick up on some particular theft of shareholder resources like when the board gave the ceo something like $100 million to compensate him for his losses on purchases of chesapeake stock, or when those ****!!! boards repriced options when the shares fell.

shareholder abuse is a fact of life and its hard to do anything about unless you are big enough to be an activist or hire attorneys to protect your interests. actually much worst than the executive compensation issue is when they sell the company out from under you at a ridiculously cheap price, Seagate for example, or sometimes they just sell significant assets for a low ball price and the senior management leaves and takes over those assets. I wish i could see this stuff coming but its difficult because as a value investor you always hope to buy something cheaply but of course management is even better equiped to determine value than outside investors. and even the
bigger investors tend to vote for ridiculous items sometimes like when endeavour convinced shareholder to vote for the acquision of their investment bank which they overpaid up the wazoo for.
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