John,
The MMs of the world (IMO) pay little or no attention to a share holder like Teo. The coalitions usually are between the company and its B of D and the institutions. They carry all the weight and can drive a company such as Cirrus in just about any direction that they want. I am not suggesting that Mr. Teo has no influence, certainly he has some. But, unless he has a coalition with one of the major MMs holding 15% - 20% or more of the shares, he is reduced to a small voice. The fact of the matter is that since Cirrus went public in 1989, the money managers have controlled this company. Sure, when it CRUS went south at the beginning of 1997 some of the institutions unloaded but not in any significant amount. Share holders like you and me account for less then 5% of the total outstanding shares.
So, in direct answer to your question as to "what can this guy actually do with the amount that he holds?". The answer is little to nothing unless....he has a coalition with one of the major institutions. Even if he has a good relationship when it comes to his holdings in CRUS, the MMs are not going to allow him to extend his influence. Probably the other way around, they will ask him to become part of their block in voting on board issues, etc.
I would guess that in 99% of all voting actions, the MMs go along and vote with the board. Like them or not, when CRUS got into trouble, they (the board) dealt with it. Suhas is gone, Srinivasin is gone, they brought in Tom Kelly, not Hackworth. Then Kelly brought in his guys. I believe we are seeing a decent turn around of this company and because they are now focused on their "core" areas we, the stockholders, will not see Mr. Teo influence anything. At least as long as the existing management team stays the course.
I am sure I made these points as clear as mud.
Calvin Scott |
