Speculations. . . .
It seems almost certain that Trimble did not jump, but was pushed. There are valid reasons for this: dramatically inconsistent earnings, a depressed stock price, and unhappy investors and analysts. Further, Trimble in the last CC implied that he was not all that concerned, himself, over making a few million in profits which would be, after all, taxable. Speaking as a stockholder, that's not a very good attitude from management. There is a lot of intrinsic value locked up in this company, and Charlie Trimble has been holding the key.
So what might have happened? The Board probably wanted an explanation from the CEO on why profits evaporated last quarter (and maybe why next year's profits don't look as good as they should, either) and weren't happy with the story. Maybe it was the last straw. The worst case, suggested on Yahoo, is that there is some truly bad news still hanging out there.
The lack of action in the stock today, and even the low volume in the past week or two, implies this has been in the works a little while. If that's the case, I'd hope there is a plan to get a replacement as CEO quickly. Trimble Navigation is big enough now, though, to continue with its corporate culture and technical values even without the founder. So I don't see this as a disaster, but as an opportunity.
As for takeover, the stock price is low enough. But have the market uncertainties been resolved enough for someone to buy the company? Who are the likely predators? What is a possible buyout price? $24? |
