<<I do not think they will respond with contract announcements until the next qtr results. May be. The fact that Caputo owns 56% of the company, makes me believe so. He wants to protect his holding from any lawsuit. He may not mind waiting for a nice capital gain next year. Ram>>
Dear Ram: I hope that isn't Caputo's position. As an officer of CMND (and controlling principal stockholder), he has a direct and clear responsibility to his shareholders. That duty, in connection with a public company, requires that he has "us", as shareholders, foremost in his mind when he carries out his responsibilities. Caputo could do what he wanted when this company was "private." Now, as a "public" company, he has the duty and responsibility to enhance shareholder value.
Furthermore, there is a tight market for IT professionals these days. A significant part of an employee's compensation package are stock options (with the hope of stock appreciation). An IT professional can pick-up and work at other local IT firms. Currently, CMND's employees are holding worthless, out-of-the-money stock options. If Caputo doesn't tell the excellent "CMND story" to the investment community soon, and continues to allow CMND stock to remain undervalued, the company will lose its talented IT professionals.
At his point everyone gains: Caputo, CMND directors, officers, employees, and shareholders, if Caputo does nothing more than what he's suppose to do: tell the "CMND story" to the investment community. |
