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Non-Tech : Littlefield Corporation (LTFD) -- Ignore unavailable to you. Want to Upgrade?

To: T.K. Allen who wrote (8624)	5/22/1998 4:15:00 PM
From: FeringiTrd	Read Replies (1) \| Respond to of 10368

TKA, I think that the problem regarding Mr. Mims, and the Harrison brothers is that they were accustomed to running their own companies, reaping all of the rewards for good management of those enterprises, and are perhaps unaccustomed with the concept of stockholder equity (other than their own) in a publicly traded company. I haven't seen the books for those companies, but would make a side bet that there hasn't been any recent period where they agreed in advance, to pay their managers (other than themselves) an amount equal too, or in excess of the total profit of the prior year, and then were generous enough too share a substantial portion of the company with them also. If they had run their private business like that, they wouldn't have been in business for BNGO too have bought them out. While I agree that they have a HUGE vested interest in this company, and presumably in seeing it prosper in the future. As I recall, they are in a lock up period, so the share price means little to them at the moment; and in fact it is probably in "their" best interest to see the share price stay low, so they can justify pricing their option compensation packages at a lower rate. There is no reason for them to want a higher share price at the moment. Why should they care what the price is, if they can't sell any shares anyway? It's in their interest too continue riding the gravy train (excessive salaries), build the business (with the warrant conversion money), and collect cheap options (by keeping the share price down using the excessive compensation packages they have allotted themselves) for conversion when, and only when, the lock up period ends. The problem the rest of us shareholders faces is one of dilution while the business is being built. It is great if a business grows by leaps & bounds, but if management eats up the profit from the growth in salaries, and equity is diluted by an equal amount by stock option compensation, we have no gain to show, and there is little, if any reason for the price of the stock to increase in the meantime. The eviction of Mr. Wilson from the CEO slot, and as head of the board of directors is of no great comfort to me (at least we don't have to put up with his IMO poor judgement in site selection). As long as he continues to draw unrighteous amounts of money, and options, as a board member, I think he will remain passive, and allow others to the dirty work. Unless Mr. Hilliou is successful in reigning in the board, there is little reason for me to think that this company's stock will appreciate significantly until the lock up period on Mr. Mims, and the Harrison brothers shares expire. As his options are priced above the present stock price (correct me if I'm wrong here), I believe that he has the motivation to pressure for change. I could be wrong, he might be satisfied with his 250k a year too front for the board, but would like to take him at face value (trying to not judge him by the company he is keeping at present) when he says he is answerable to the shareholder (paraphrasing), and will give him a short time to show that he is serious. If there is no progress on this front, I will allow someone else the privilege of holding my dead money shares, until the lock-up period is getting closer to expiring, and look for a management that is interested in returning value to the shareholder. OFF TOPIC; Actually, I did buy some PHYC (partially because of the article I posted) the other day @ 17 7/8, but don't want to get discussing my other holdings, as they are immaterial here, and I've been a better fade, than follow lately. ;-{ Dave