This company's management controls over 70% of the stock. I have found in general, when management owns more then 50% they are not concerned about the outside share holders. In closely held companies, I have found when the company does have a great year, Management's bonus usually eats up the profit.
I am not making comments about this company, I am speaking in generalities. I have not looked at this company before today, it popped on my screen as a potential buy, but I decided against it based solely on management controlling more then 50%.
I would challenge you to find any company that is owned over 50% by insiders, that has done well for the outside shareholders.
Two beggars are sitting on a park bench in Mexico City. One is holding a cross and one a Star of David. Both are holding hats to collect contributions.
People walk by, lift their noses at the man with the Star of David and drop money in the hat held by the man with the cross. Soon the hat of the man with the cross is filled and the hat of the man with the Star of David is empty.
A priest watches and then approaches the men. He turns to the man with the Star of David and says: �Young man. Don't you realize that this is a Catholic country? You'll never get any contributions in this country holding a Star of David.� The man with the Star of David turns to the man with the cross and says: �Moishe, can you imagine, this guy is trying to tell us how to run our business?�