better be good. It'll be interesting to see how management spins the numbers. Stock seems to be sagging badly....although all the gas players, and chemicals/basic materials as a sector, seem to be too. Pershing's dream of $200/share may take awhile.
aud802009....I don't quite understand what you mean that Ghasemi has "a poor record at buying". Are you referring only to his purchases of APD or is there a larger picture in his past that hasn't come up as yet?
yep....and Ghasemi now owns 189,000 shares worth almost $28MM at today's price. What I find interesting/encouraging is that the man actually bought most them....rather than accumulating shares via grants and options like most CEOs do at the expense of shareowners.
The man has his own skin in the game....gotta give him that. Let's just assume Pershing isn't somehow backstopping or guaranteeing his positions.....don't know if that kind of thing would even be legal.
Chairman Ghasemi continues to show his confidence in APD by his actions.. He made a direct purchase of 20K shares in open market on May 1, one day after the earnings announcement.
rational_investor.....a long, long time age a very wise man told me "when you take your company public it's like selling your soul to the devil". I have never forgotten that observation...and it seems more true today than
I think you're absolutely right that after the founders are gone compensation systems for hired help at the executive level get FAR too lucrative for them to want to change much. They only know the world they live in....for them, it's great, why change it? If the numbers get bad, fire a bunch of little people....the numbers get better and then you get lavished with bonuses. What a silly dynamic.
I've also worked for closely held and privately held corporations.....the differences in atmosphere, freedom to act and from Wall Street pressures, and fewer regulatory requirements are stunning.....for the average employee as well as top management. It can be an nice way to live.
shyras....I'd think Ackman will the one who decides how patient Ghasemi will be permitted to be. They've cut costs and "restructured" a bit but the portfolio is largely unchanged and no steps of material significance have been taken...yet. They have a long way to go......and the stock is priced for results that haven't materialized....yet. Charitably.....it's still a work-in-progress.
We'll see if those who own the 90% of shares Pershing doesn't will hang in there......I'd say the recent retreat suggests some won't be so patient.....which won't help the Pershing vision.
Chairman Ghasemi during the recent Conference Call, following release of quarterly numbers:
....As I said last quarter, we are not going to use currency headwinds as an excuse to lower our guidance this year. We take very seriously what we have promised investors at the beginning of the year and consider it to be our job to take actions to deliver the numbers we promised rather than reducing our guidance each quarter because of currency fluctuations or economic conditions.....
….the incentive system that we have for 95% of our people is based on constant currency.....
Obviously, someone other than the 95% is responsible for the missed top line because of currency fluctuations. Will Mr. Ghasemi be a patient boss? Any thoughts?
I am currently in a holding pattern - will see how this unfolds.
I'm assuming this kind of gyration is what happens when a stock becomes more of a trading play and is not viewed as a sound, dependable, long-term investment.