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ZAGG Inc Message Board

  • hstein56 hstein56 Dec 21, 2012 1:10 PM Flag

    so disappointed in zagg

    I am reallydisappointed in Zagg:
    1- Zagg is in a commoditizing business, which means lower prices and margins going forward;
    2- Zagg just signed an agreement to pay their new CEO $692k/year, which is way out of line with where he should be paid. A similar company in Utah, Skullcandy, which is also larger than Zagg, pays its CEO $311k/year. The Board of Directors should all be fired for ripping off shareholders in this manner.
    3- Recently, Zagg has franchised its business and opened like five stores in Utah...and all of them are dying. I have never seen a customer in the City Creek store. Why in the world Zagg's management thinks they can franchise and be successful is beyond me. Zagg is not a brand but rather a commoditized designer/manufacturer. I believe all of these Zagg stores will close their doors within a year, unless Zagg pumps them with money. Management should be fired for thinking they can be successful as a franchisor.

    Sentiment: Strong Sell

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    • I'll buy any shares your willing to sell

      Sentiment: Strong Buy

    • i agree they are paying the ceo too much, but not a huge issue. as far as franchised stores, there is little downside to the company for a franchised store. the franchisee is the sucker who could lose his shirt. the company usually gets some franchisee fees to start and then gets a royalty, so even if the stores go bust, zagg will lose little. i will agree with you however, that zagg faces a challenge of creating differentiated products. the tablet and mobile phone markets are still booming, but much of the growth is outside the US, so zagg needs to move faster to expand international markets. the short term question is whether any large hedge funds will get on the buy side of this stock. we need to squeeze the shorts.

    • Where have you been living, under a rock? ZAGG is now probably the most exciting stock with the new energy and strategic vison of CEO Hales. If you shorted the stock, then you better cover now before you really lose shirt and pants.

      Sentiment: Strong Buy

      • 1 Reply to hansm7777
      • In my opinion, and i promise you Zagg will ultimately come to this conclusion, franchising was a boneheaded decision by Zagg management and the new CEO Randy Hales. The stores in Utah are desolate places, with no customers and more square footage than than a 7/11 in at least one case. I do not refer to kiosks here, but rather full blown retail store outlets. Regarding Hales salary...there is a market salary here in Utah for CEOs of companies the size of Zagg, and Hales' new salary is over two times what his market value is. Again, the Board of Directors is to blame. But, I would argue, Hales carries blame as well. He knows damn well that he is overpaid...yet he probably lobbied for it and asked for it. That is not the kind of CEO i would want running my company. I would want a CEO who cares about his shareholders more than he cares about his own salary. I know they are rare, but they are still out there. This was very shortsighted by Hales to take down this kind of salary. He WOULD NEVER get near this amount in Silicon Valley and any future business person with any competency will look very negatively on it. And the fact that this Board approved it demonstrates their incompetency, desperation and disinterest in working to do what is right for Zagg.

    • Having troubles exiting a short position I see with the volume being so low. You argument involves 400k and 5 kiosks doing poorly, the 2 million/yr they just saved in interest more than covers that up.

 
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