TO Cirrus IR, Management and Board.
I also own a company called IDTI. Their stock has also languished in recently years, but currently the stock is trading at much higher level that CRUS (comparitively speaking). They have not shown great earnings yet, BUT THEY HAVE PUT THIER MONEY WHERE THEIR MOUTH IS. In the last few month many insiders have been aggressively buying the stock:
02/26/98 MENACHE JACK Sold 13,417 $15.75 $211,318
01/30/98 CORTELYOU WILLIAM B Purchase 20,000 $13.56 $271,250
12/11/97 BERG CARL E Purchase 352,650 $9.19 - 9.56 $3 Mil
12/10/97 CORTELYOU WILLIAM B Purchase 10,000 $9.38 $93,750
11/26/97 BERG CARL E Purchase 375,900 $10.38 - 11.31 $4 Mil
11/24/97 HODGE ROBIN H Purchase 20,000 $10.63 - 10.69 $213,500
11/24/97 CORTELYOU WILLIAM B Purchase 2,500 $10.50 $26,250
06/13/97 PERHAM LEONARD C Purchase 22,000 $10.16 $223,520
06/12/97 BERG CARL E Purchase 50,000 $9.75 $487,500
05/30/97 LEWIS DANIEL L Sold 5,000 $14.00 $70,000
03/04/97 CORTELYOU WILLIAM B Purchase 29,600 $10.75 $318,200
and intent to sell:
02/25/98 MENACHE JACK 13,417 $209,640
05/16/97 LEWIS DANIEL L 10,000 $150,000
Compare this to crus:
08/06/97 CIRRUS LOGIC INC Sold 302 $15.25 $4,606
08/04/97 CIRRUS LOGIC INC Sold 8,500 $14.13 $120,105
07/31/97 CIRRUS LOGIC INC Sold 86,722 $13.56 $1 Mil
and intent to sell:
11/05/97 CANNING MICHAEL L 206,627 $3 Mil
11/04/97 DINES STEVE 8,500 $120,063
08/06/97 BROOCKMAN ERIC C 302 $4,681
07/31/97 CAPARELLI WILLIAM D 84,226 $1 Mil
03/19/97 REDDY SENA 37,400 $411,400
As you can see you Cirrus management and Board of directors, you have not shown the investment community, any confidence in your own company.
So in the past few month when your stock has gone down by 50% and IDTI has gone up by 50%, the reality is that WALL STREET HAS NO CONFIDENCE IN YOUR ACTIONS MAINLY BECAUSE YOU HAVE NO CONFIDENCE IN YOUR OWN ACTIONS. OTHERWISE YOU WOULD BE BUYING YOUR COMPANIES SHARES!!!
AND BY THE WAY WHAT HAPPENED TO THE SHARE BUYBACK??????????????????????????????
MIKE BUY SOME SHARES!!!. Wouldn't you love the ton of stock you already own to be at say at 20, 30, 40 or even back higher. Well The Street loved you in 95, so why not again. This is not my opinion but the opinion of many other (see below)!!!. And please Cirrus IR take a short walk and give this to Mike. You have done a great job in turning the company around, now let turn wall street around on the company.
Thanks,
Frank Povoski and many other shareholders.
The following was from MS Investor Web site:
"However, you can still find an occasional insider purchase in the
smaller-capitalization technology stocks. Out of all the sectors and
industries we track, tech insider buying has historically proven to be one
of the most powerful indicators of future value (along with biotechnology,
REITs and regional banks). We look for cases across all industries where
insiders have been buying shares in beaten-down, small-cap stocks.
Integrated Devices Technology
One such company is semiconductor maker Integrated Devices Technology
(IDTI), which traded as high as 32 in August of 1995.
Insiders led us to Integrated Devices back in February last year after vice
president William Cortelyou purchased 30,000 shares at 10.75 each. Two more
bullish rounds of insider accumulation have followed over the past 12
months. Things really started getting interesting in June when two insiders
opened their wallets and added to their positions. In a 200% increase in his
common-direct holdings, chief executive Leonard Perham purchased 22,000
shares at 10.17 each. Perham joined IDTI in 1983 and has served in his
present capacity since 1991.
Also involved in the June cluster of accumulation was director Carl Berg,
who purchased 50,000 shares at 9.75. In addition to buying shares, Berg
exercised and retained options for 8,000 shares at 1.94 each. The options
were of the non-qualified variety, requiring Berg to incur an immediate tax
liability (for the difference between the market price of 9.75 and the
exercise price of 1.94) in addition to the cost of the exercise (the 1.94).
Our research has shown that the exercise of non-qualified options is a very
bullish indicator, and we like the fact that these are seasoned company
insiders.
Despite the summertime insider buying, the stock traded between 9 and 13.50
for the rest of the year. Company execs began buying the stock again in
November, forming a "double cluster" or second wave of accumulation by
multiple insiders. This pattern of repeated buying is fairly rare. Four
insiders purchased a total of 768,400 shares from Nov. 12 to Jan. 21 at 9.19
to 10.69 each. Director Carl Berg led the way again, picking up 735,000
shares at 9.19 to 11.31 each. Vice presidents Robin Hodge and William
Cortelyou added 20,000 and 12,500 shares respectively. The buy upped Hodge's
holdings by 350%. In addition to the continued buying, no one is selling at
Integrated Devices (only one insider sale occurred during 1997). Tech
insiders sell all the time as they cash in some of their numerous options,
but that doesn't seem to be the case with IDTI." |
