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To: donpat who wrote (404)12/17/2005 12:05:28 PM
From: rrufff  Read Replies (3) | Respond to of 827
 
I don't disagree about operations but given the Angstrom reputation for r/s after dilution and dumping, if I were he I would do the following for my own selfish interest as well as my duties to my shareholders:

He has the money to buy up some significant amount of shares using his own funds and family funds.

Why do this? Is this just a gift?

No - he has a fiduciary duty to shareholders to maximimize the corporate currency. Given past dilution, this would partially offset the prior pattern and would start to revise his own bad image as being shareholder-unfriendly.

Again, given that many CEO's can only see their respective financial needs, if he is able to change the image and shareholders jump in, the stock COULD run perhaps 10-50x current price (obviously a WAG on my part.) So for an investment, on his part, of thousands of dollars, he could make millions. This is what the management of HISC did earlier in the year and the results speak for themselves.

THEN - he would have helped himself, the company and the shareholders with this turnaround, one that won't happen with mere operational results IMO.

If he does another r/s - I believe he will never be able to dump more shares in any significant manner. Given the history, he has reached the point of diminishing returns, with each round of new entities and r/s's giving less and less of a return to those who have been in control.

Not bashing - just stating the history and giving a scenario in which Angstrom could create a "win-win" situation and IMO the only way for him to make any significant money in the near future.