Everything looks good on paper and in marketing space but I can't help being wary of all the CEO SALES taking place on such a frequent basis. I realize this guy has 8M shares and I can't really blame him for making occasional sales but jeez does he have to do it all the time. It doesn't look good and it sends the wrong message and it makes me question his judgement. And yes, I realize it's probably all scheduled sales but it stinks to me and it makes me reluctant to participate. Still .... It's getting tempting.
There have definitely been a lot of transactions over the past 2 years, but I think it pretty much just keeps the insiders in equilibrium with their share counts. 8 million shares is an awful lot, and if you look at the option grants, acquisitions, exercises and sales it probably all balances. Interesting finding, though, there are never any transactions within about a month of earnings being reported. I don't know if that's an SEC thing, or company policy. I think a good idea would be only to grant options based on a percentage of the average stock price during a specific time period, or key metrics made during the quarter. Say, 90% of the quarterly average to give the officers incentive to get the price to move higher. If I could go to the shareholders meeting I would suggest that. Free acquisitions of additional shares provides no incentive and is definitely dilutive in the long run. But first things first---have to get the revenue and EPS up and consistently into the next tier.
its pretty clear to after seeing all granting of options at and exercising at so low a price.
where Vdsi management being richly rewarded. for what seems to be less then stellar performance and execution for public company. i.e. low options awards not in best interest of shareholder! MO
Both you and BruceK have good points and I noticed that as well..I just finished reading Benj Graham's "Intelligent Investing" (Warren Buffet's Bible) and he makes exactly this point. You should always do GAAP adj by fully diluting option pricing hit to common for true P/E multiple...
Companies who issue cheap options (like Cisco) usually buy shares back at higher price using internal cash or more flotation so the common shareholder gets dilution they don't want eventually.
Agree with MGM though. My price is low 9's due to Euro slowdown and the backlog hit entering 2012. The stock is still way underpriced...$0.60 EPS x P/E of 15 = 9 bucks!
7.70 is a give away..market treating this company like a value trap.