Sunday, December 30, 2012
If Pandora executives don't believe in their own stock, why should investors? According to the latest batch of SEC financial disclosures, Pandora executives cashed more than $1.33 million worth of shares in December alone, another chunk in a broader, post-IPO cashout that now totals $73.4 million.
The most aggressive ATMing is coming from CTO Thomas Conrad, who banked a sizable $671,293 in the Christmas month. In total, Conrad has cashed $13.5 million in Pandora shares since June of 2011, with a massive, compound-style estate among his fresh possessions. Other toys reportedly include flashy new cars, with executives suddenly assuming rapper-like buying habits.
But there's one thing Conrad's not buying: Pandora shares. In fact, despite the sizable dump-offs, Conrad has not purchased any post-IPO Pandora stock. That goes for most other executives, a message being watched not only by investors, but a highly-distressed artist and songwriter group as well. Presumably, legislators are also watching this bonanza, especially as the company continues to lobby against burdensome artist royalties on the grounds of financial distress.
Other cashout heavyweights include cofounder Tim Westegren, who was quiet in December but whose cashouts now total $9.93 million. Of course, that is all within the bounds of the law and defensible on the grounds of asset diversification, but it creates contradictions with the broader campaign to reduce royalties. Westergren is the face of Pandora's protest against current royalty rates, with a poormouth pitch that includes tales of his rough history as a touring musician. And after a recent, profitable quarter, perhaps Pandora can afford it.
Pandora shares landed at the distressed $9.01 heading into the weekend. And with that, here's a breakdown of what Pandora's brass have cashed ahead of 2013, thanks to insider filing site SEC Form 4.
Complete ignorance of context. Total cashout is what, 5% of market cap? The amount in question is 1/1000th of market cap. A huge chunk of these executives's wealth is tied up in the stock.
Not diversifying at all would make them stupid.
And the criticism dripping with venom? Based on the IPO and current stock price, the only people who can complain are greedy pigs. No one paying over $5 for this has cause to complain, they were making a risky bet.
Interesting. Large insider ownership - and quite large automatic sales, every two weeks or so with the Conrad dude.
I have to admit that the insiders, starting with the "guidance" call by the Ceo, don't appear to be as aligned with shareholders as the percent ownership would tend to suggest.
Going to cash ahead of the Fiscal Cliff. Congress will stall decision into 2013, and let the markets bring pressure on all stocks.
Volume has slowed too excessively here; which makes questionable the sustainability of this bounce off the bottom.
I would recommend any retail longs close out margin at a minimum, definitely take any trading gains and pare back longer term positions.
All the selling does not bode well for prospects of a M+A deal as well. This may be an abstain until new structural developments emerge.
the auto selling buy the exec's helps the shorts further manipulate this stock. Maybe while Pandora is seeking legislative relief they could propose legislation to prevent exec's from selling shares the 1st two years. This would prevent the fleecing of shareholders. P exec's have no skin in this game, how committed are they to the shareholders ? Interestingly, the CEO, Joe Kennedy is the only exec who hasn't sold a share. Amazing how a publicly traded company will hold investor conference after investor conference to increase shareholders while none of the executives is willing to buy any shares..... RED FLAG !!!! Together the Pandora exec's have sold 70 million plus $$$ WORTH of shares and bought ZERO shares, RED FLAG. This just further illustrate how the not so free markets work. How many times have you seen the exec's of a company making a killing, along with the IPO handlers, initial venture capital. Good company, poor business model and nothing but thieves and con-artist running this company. They only chance of surviving is bribing the politicians with all the money they've pocketed this first year, but these exec's don't seem so inclined. CFO is leaving , watch as others follow and you'll know they've exercised all options available. Only in America is white collar crime legal !!!! Great business model, from the Bernie Madoff, Bernie Ebbers school of convicts..