So I was pondering for awhile which of my two horrible stocks to dump for the tax season. TCHC or RBS. Took a big risk on F when they declined the government assistance and it payed off pretty handsomely.
My first thought was TCHC since it's been quite a miserable 3 years with them. Each and everytime I averaged down I plunged deeper and deeper.
However....I try to do my research when I buy or sell. (ashame that our old friend Lawson wasn't so transparent) Anyway....here's some interesting data i found in the Definitive Proxy:
(All rounded) Ceo: Michael Braun (Age 42) Owns-74k shares 2008: 186k salary 94k in options 0 Bonus 2009: 214k salary 24k in options 12500 Bonus
CFO Peter Pry (Age 41) Owns- 46k shares 2008: 169k salary 35k in options 0 Bonus 2009: 180k salary 0 in options 10500 Bonus
President Stephen Young Owns- ? shares 2008: 129k 35k in options 0 Bonus 2009: 151k 0 in options 500 Bonus
Board Members:-Total 575k shares 7% of total Simberg -245k shares owned Wilcox- 133k shares owned Dorf- 130k shares owned
SlimeBall: Ed Lawson -492k shares owned
One big negative to this board is the blind eye they turned to Lawson. As he spouted out his 2.00 EPS and let his wife sell her shares, the board took a hit when it didn't come close to that. The fact that he still holds 492k and bought a bunch more back when it got down below 2 dollars tells me obviously he thinks there's a rebound coming. One thing I've come to believe (at least in their minds) they are shooting for a long term investment and recovery. CEO-CFO-PRES are all pretty young, and I think they are in this for the long haul. There is a lot of money sitting on the table for the board, and unless they are that nieve I would hope they hold their executives accountable.
Im not 100% yet that they can become profitable the way they are sitting. They are trying to put less risk on their books to bring down their reinsurance. But shouldn't that risk of brought them money in the year of the non-hurricanes? I'm still hoping for a buyout.
Well, I think I'll hold on to them for one more year. But I swear, if I hear Braun say one more time that we are in the transition of switching policies, or a rate hike was approved, or we are in a competitive market...and we should see improvement in the next 2 or 3 quarters, but we are looking out for the interest of our investors....UGH!!!! NO MORE EXCUSES MICHAEL!!
There's an old saying in Tennessee - I know it's in Texas, it's probably in Tennessee - that says, fool me once, shame on ... shame on you. It fool me. We can't get fooled again."-George Bush
As of December 2, the Lawsons hold roughly 270K in actual shares, plus another 107K shares from exercisable options which should be out of the money. That's 377K total shares. They've sold 165K shares since Feb 3.
Actually I just bought TCHC expecting a T/A trend reversal. We're right on the bottom of a trend at present. I would at least wait until this trend is violated. 10 cents more isn't going to kill you. you should be able to recoup some of your loss.