Timing of announcement - Would you rather people leave AFTER OEM deals and production (when the stock would be around $16 - $20) or before (when the stock is around $5)? Clearly the news will lead the stock lower. If it was at $16, with such announcements, it'd probably find single digits. At $5, it'd probably find $4 again.
Clearly, the time to get out bad news is when the stock has already priced bad news into it. Get out all of the dirty laundry at once. Hell, the stock has already dropped to $4 (50%), so what's another buck? If it was at $16, it'd drop to $10. BUT, the difference in my mind would be, why would these people leave when everything is apparently running so smoothly? I'd be more concerned if they announced it later, rather than sooner.
Now, having said all of that, it appears that Lev is shaking up the troops. Personal reasons? Give me a break. He was fired! I've been inside enough boardrooms and meetings to know that if someone leaves a company for personal reasons, he was fired! I think that Lev (and the Board) is getting out all of the rif-raf and setting the stage for production. (By the way, according to Vickers insider trading, Masuda was one of the other insiders to recently sell their VLNC shares. Moral of the story, don't sell your shares! |
