Sales by Blystone, who is also president, created "a bad appearance, even if within the bounds of the law," said JP Morgan analysts in a research note Wednesday.
.......or just caught up in a Market downturn? Shares should of been sold over time to blend in. The board would also be in the know of these stock sales! It will boil down to who knew what and when they knew it! If it was within the "bounds of the law" the shareholders don't stand a chance! If it wasn't then how about some new management??
This BLYCROOK should be in jail ! Billion in equity wiped out...Letting great employees go left and right!!
Ruining a good company...
Hope Capt. Billy Blycrook burns in hell...
What will his millions stolen from others do for him in Final Judgement?
Guarantee an ETERNITY of PAIN for all the pain he has inflicted on others...such a slimy pondscum sucking crook!!
Executive salaries for the Chairman are competitively set just like in sports and entertainment. How many .200 hitters are overpaid? How many singers have one hit, sign and then never produce a dime for the producers? Same is true in the boardroom.
Board's of Directors have faced legal action by unhappy shareholders over poor governance. If you studied this stuff you would know that. The days of the good 'ol boys in the boardroom have long passed. Foreign competition from China and Korea have ended that!
Few top people are willing to take the job complete with the nightmare of dealing with fools everyday. The complexities are enormous. The toll on health and family are high.
Just watch the appentice. You see very smart people totally screwing things up and that's just a sample of what can happen with the wrong people running this company. Like the Harvard MBA who set up the lemonaid stand near a smelly fish market.....you want him to be CEO of SPX for $100,000 a year?
Check out my next post....
kingsfool, the poem is great - and relevant. This too WILL pass.
In the meantime though, some shareholders have been hurt. Whether intentional or not, the way the exec team handled things resulted in a calamitous fiscal event.
As I've said before, I don't begrudge an executive making a lot of money on stock options, particularly when the shareholders have made out well under his watch. But the timing of this whole thing smells.
Mr. Blystone adopted his Rule 10b5-1 plan on Jan. 2, almost immediately at the close of the previous fiscal year. And as you know, that plan is to offer him protection for sales that may occur while he is in possession of material nonpublic information, which would normally make those sales illegal. But the company, and we presume Mr. Blystone, was aware of a major legal settlement on Dec 23, a week before the close of the fiscal year. And
Rule 10b5-1 applies to non-public information that about things that occur AFTER the filing.
Now, here's what major shareholders are looking at. Seventeen days after his filing, when Mr. Blystone was in the midst of selling over 1.5 million shares into the market, the company reconfirmed its 2003 diluted earnings per share FROM CONTINUING OPERATIONS of at least $3.40.
Fast forward to the Feb. 26 earnings announcement: "we generated diluted earnings per share from continuing operations of $3.41". But that $3.41 includes a gain of a gain of $41.9 million from the Microsoft settlement, which was recorded as other income. My God! That's about 10% of the earnings for the entire year.
I'm getting carried away here. But the point is there are serious questions to be answered about who knew what and when. Also, when the company reconfirmed guidance on Jan. 19, did they have an obligation to discuss the impact of the $60 million settlement on those earnings estimates, $41.9 million of which was dropping right to the bottom line.
A lot of people on this board have come to Mr. Blystone's defense; saying what an upstanding guy he is. That may all be true. But he somehow allowed himself to get involved in a situation that stinks to high heaven, and one that cost a lot of people a lot of money - at least in the short term.
Blystone could have received a much higher base salary but took stock options instead. He believed he could raise the value of the company and the rise in the value of the stock would follow.
When can he sell his shares? There are always insider issues. He took the sale out of his hands under the rules.
The shareholders that read the news releases during the quarter realized the gain would be in the results. As far as the long term effect, I reference the gold ring presented to Solomon by Benaiah, and the poem that follows, which says it all.
Love and Light,
Perhaps we will look back and laugh
or smile, or reminisce
But one thing is for sure - this too shall pass.
The horrible feelings, the torment we feel
the clouds that never seemed to lift from our day
Just as soon as they came will fade away.
Because - this too shall pass.
All our thoughts and feelings and tears will calm
and we will own a blue sky after all our storms
We'll recover from abuses all our scars will heal
Forgiving and courageous is how we'll feel.
Because - this too shall pass.
Let us do what we must to conquer every enemy
Standing tall, fighting fair, owning dignity.
Never losing hope that in the end we'll finally win
Refusing to ever give up, and never giving in.
Because - this too shall pass.
Cease feeling rage instead forgive and feel ourselves transform
Permit ourselves to feel peace and serenity amidst the storm
Vindictiveness has no place in a heart that is kind and pure
Forgiveness and love in our hearts will prove to be our cure
Forgive, forgive, forgive....and live ~
THIS TOO.... SHALL PASS.............
The question of filing the proceeds of a lawsuit judgement as the "meeting of projections" and then selling big amounts of insider stock before the earnings are posted is VERY damaging. SPX has a way of making it's subsidiaries post positives rather than admit a downturn economy and that is bad business. It's an unending cycle that leads to trouble. SPX forced positive earnings reports and tried to cover it up. Thats the crux of each of these lawsuits. You can believe the company line that these are frivolous, but open your eyes these guys had misled investors before.
"It will boil down to who knew what and when they knew it! If it was within the "bounds of the law" the shareholders don't stand a chance! If it wasn't then how about some new management??"
Here, here! At least one person "gets it".
Well done charthopper, and I hope some of the others here will also keep an open mind until the facts are in instead of pre-judging.