HP Boosts Earnings but Lowers Guidance!
Shares of HPQ went up almost 3% after their CC.
As same as Tessera they had boosted revenews but lowered the guidence.
Now the question is why TSRA stocks slid after their CC by more that 40% and HPQ went up 3%?
The difference is the difference between a crook managment and a decent management!
HPQ management could have done the same thing as TSRA managaement did: Couple days before the earning CC they could have raised the guidence for the current quarter, sell all of their shares maybe with a 10% gain and don't give a damn about the investors after CC.
IF HP had repeated the same thing, as TSRA mangament did, their shares would have slid today by at least 15%.
I still believe TSRA is a strong buy, even with factoring in her management.
Next time my friends you buy stock, you should factor in the degree of the greed of the management besides the technicals and fundamentals!
Options are vested, i.e. they can exercise now. The point is that rather than exercising and dumping everything, there is a plan (called "10b51")in place to systematically/periodically exercice over time. The purpose of these plans is to avoid the "insider dumping with material non-public info" accusations being made.
Insiders Can Establish a Plan To Sell or Purchase Securities Provided:
The Plan was made in good faith and not part of a plan to evade the prohibitions of the Rule
The insider was not in possession of material non-public information at the time the Plan was established. Trades are made pursuant to the Plan. Insiders Can Trade According to the Plan Even if Material Non-Public Information Later Becomes Available to the Insider.
My error in interpretation of what you said.
I think that with potential dilution of less than 10% it is within the ballpark of what is usually set aside although I think the move will be to get away from stock options for most companies. Looks like the company is taking that direction and I think a lot of companies are scaling back stock based incentive compensation.
I'm on your side. The point, since apparently you missed it, is that insiders still hold sunstantial shares via options - and have not sold "nearly everything". This is no surprise. I was simply trying to provide substantive info from a 10k filing vs conjecture and ranting. Relax.
"As suspected, these guys have $millions more in "stock" that does not show up in "holdings" b/c the vast majority of their holdings are in options."
Wasn't all this spelled out in the initial registration statement? I am not sure why you are surprised now.
The irony is how many people do you know who could wallpaper their house with worthless stock options? I know plenty. Yet, when someone takes a gamble and wins, you begrudge them for stuffing some money in the bank. If you are going to tell me you wouldn't do the same, then you are either a liar or a fool. Now if this company was losing money hand over fist and these guys were cashing in, I would be pissed. But, that doesn't seem to be the case.
Oh well, you can't please everyone. And, it looks like the shareholders have voted to cut back on future dilution. I just hope this isn't a case of cutting off your nose to spite your face.
If I had options to purchase 4 million shares at $4, I would do everything I could to make the company as profitable as I could. And, look at the peanut salaries these guys are drawing. With all due respect, I think you are barking up the wrong tree. But if you think you will get even by pounding down the stock price to the detriment of everyone, then you clearly are shooting yourself in the foot if you are long. If you are a short and think this situation is bad, you should look at the homebuilder stocks where the insiders are not only dumping like mad, but drawing salaries that are outrageous. Now there is where the great short play is going to be. Just look at the premiums are on the leap puts. That should give you a hint at how overpriced those companies are. And talk about charts that look like rocket launches.
But we all know that everyone will soon be living in a million dollar house, don't we? And everyone can afford one, can't we?
The reality is that there is no reality. The only real reality is emotions. And, as the father of a friend of mine once told me when I was a lot younger, "I never invest in the stock market, because I don't want my money exposed to the emotions of a bunch of idiots." It was good advise then and it is even better advise now.
For the record, I mostly short stocks. But, on this one, I am long and in a profit position at the moment since I bought when the blood was running in the street. My bet is that they will prevail in the litigation and that all will be right in River City.
Facts from the 10 K (as of 12/31/04:
Insiders currently have vested/exercisable options to purchase 3.67mm shares at an ave of $3.60 (current value about $93mm). There are a several million more unvested, or unexercisable, options as well.
As suspected, these guys have $millions more in "stock" that does not show up in "holdings" b/c the vast majority of their holdings are in options. I estimate that CEO, McWiliams has sold about $20mm worth of stock, but has about $40mm more in vested options - not including unvested.
Everyone needs to do their own homework - check edgar Online, they may have a free trial. or go to the library, or call and ask the co to send you a 10-K.
Their is more substance to what I posted than the constant ragging you post. All you do is ramble on about sales and assign the most negative spin you can without any facts. But, that is your privilege to post whatever you want: fact, fiction or opinion. So far, all I see is a fact (sales) and your opinion (negative), nothing else. Suit yourself.
OK, I'll continue to "interpretate" my way and you can continue to believe what you think is fact. I'll ask you this, though. Shouldn't we be happy, based on your interpretation of fact, that the insiders who have been constant sellers now only have 12% of their share left to sell? Hey, then the selling pressure is almost over from insiders!!! I'm not happy about the 88% figure for the 6 month figure.... Based on how you "interpretate," mathematics say that figure can't repeat itself in a future 6 month period, not without massive insider buying first. I think it can! I hope it won't.
Since you're fond of Yahoo Finance data, take a look at these as defense of management.
Profit Margin (TTM) 76.45%
Operating Margin (TTM) 56.06%
Return on Assets (TTM) 59.27%
Return on Equity (TTM) 62.09%