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Biotech / Medical : Biosource International

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To: Timothy Grimes who wrote (613)	1/20/1999 9:28:00 AM
From: Joe Dancy	Read Replies (2) of 696

You are on-point Tim with regard to insider ownership - it could be higher - then again when it gets to 50% or more they don't have to worry about change of control. In reality, the business judgment rule lets them adopt poison pills anyway and effectively keep suitors at bay even with a minority interest. At least the CEO has 600,000 shares or so therefore has an interest - he's lost a cool $1.8 million or more since the price has fallen from $6 to $3. Not small change, and the guy is not overcompensated in salary IMO - I can't remember what he makes but it was not as high as I had expected, nor as high as some other smaller companies where management sucks all the profits out in salary. I would also like to see some insider buying - if I was working at the place I'd be buying hand over fist - but remember that stock options in many cases allow the management to "buy" shares without actually "buying" them on the open market. And the company bought back shares on a pretty big scale, which counts for something. Your comment brings to mind another company that I'm interested in named Dycom Industries. The company had problems, fell a few years ago to a market capitalization of $16 million with the stock hitting $2 or so a share on the 8 million shares outstanding. The CEO borrowed a million and bought stock, and publicly said the place was not going bankrupt and should prosper long term. The company is trading around $35 today - three or four years later. He made a killing, as did investors who followed his lead. Would be nice to see the same thing here - real leadership and commitment - at least it displays confidence in what they are doing, where they are going, and confirms that the underlying value is there. Then again, I'm not displeased with where we are at and where I think we are going with BIOI. Joe

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