Calvin, I would like to respond to your comments about the management politics and takeover possibilities. Let me say first that while I may disagree with you on these points, I do not intend it to be personal, I value your opinion and always look forward to reading your comments on this thread. While I am a fairly new active participant on this thread, I have been reading it for a while and have been following Cirrus closely for over three years.
<<First, I believe we are here do to a rift within the Board of Directors. Kelly wanted and deserved the CEO position and made his move accordingly. Hackworth wouldn't have anything to do with this and gathered his troops (don't forget Suhas is still on the board) and had him removed.>>
I do not see any evidence of a rift in the board. It seems to me they have always been behind Hackworth pretty strongly. Otherwise wouldn't he have been booted out during the troubles of 1996-97? Also, when Kelly was brought in, I think Hackworth was still in control. He gave up day-to-day financial/operational control to concentrate on strategic direction and customer relations. But he was still CEO and chairman, while Kelly had to share the Office of the President with Alexy. That looks to me like Hackworth still had the upper hand, so to speak. What leads you to believe that Kelly left because he wanted and couldn't get the CEO job? My guess would be that he left like he did at his previous companies when he had turned them around and wanted a new challenge. As for Kelly deserving the CEO job, I think Hackworth makes a much better CEO due to his superior personal leadership skills. Regarding Teo's part in all of this, I have no clue.
<<Secondly, as a result, I believe that Cirrus is pursuing suitors and the will be bought out in the near future. Whether it is INTC, NSM, or 3Com, it doesn't really matter. By all indications, they are cleaning house, emptying the trash and preparing for the nuptials.>>
What are the indications they are cleaning house? Could you elaborate? The only factor regarding a takeover that I am aware of is a negative one. The JV deals with IBM and Lucent contain clauses that make it difficult for the company to continue them in case of a takeover. That would be a big obstacle. Of course, the low stock price is a big factor in favor of a takeover, but it is not something in Cirrus' direct control.
G.P. |
