The problem, as I see it, is that too many options were granted, so much so, that when insiders started taking profit, the float was too low to accommodate the dumping by insiders! The BoD needs an overhaul!
How quickly it is forgotten that McRae's ownership is up about 350,000 shares this year. From my calculations, McRae's has made very little from his sales of LBIX stock, when he exercised 500,000 shares which would have expired at the end of that month. He did buy 80,000 shares at $3 a share less than 5 months ago. His share ownership increased to 7.9% this year. As far, as a CEO goes, McRae has been top notch so far. Granted, I reserve the right to change my opinion based on earnings performance but based on the the companies results, I dont think anyone can fault McRae for anything. I would call McRae's insider actions for the full year to be bullish.
As for the board. Merriman doesnt know how what he is doing. He sold LBIX @ 2.70, he has sold at any level and he always buys MEM. Go look at MEM's performance one day.
Carlson (Gilvest) does concern me, simply because he is the ultimate problem, he is selling and he is selling it hard. I dont know why he is selling it hard but it concerns me. Certianly. You dont want to see mass insider selling and he is the only one selling at what I'd call an alarming rate.
As for the rest, the sold options that would have expired. the stock was up 400-500% and it was the first big move higher in over 3 years. The insider selling rate has been reasonable for a stock that moved that much higher this year.
There is no comparision here, other than alot of annoyed shareholders with a falling stock price. I am staying loyal with LBIX, the growth rate, the price to sales ratio and the product line is enough to keep me happy. I had no intentions of selling the stock this month, I am here for the long haul. However, painful it maybe. LBIX is by no means low risk. Its very voliatle and it has a relatively low float. You dump an extra million shares on the market and the stock price will fall. Overtime, it will be absorbed and fundamentals will win out. LBIX is trading at a cheap valuation.
The performance of the company has been good, 41% growth for the first half of the year. Thats hardly poor. The fact the stock price is falling is a combination of Hansen + insiders selling, particularly Carlson (Gilvest). The rest of the insiders have done what you would naturally due with options expiring and having a stock up 500% for the first time in many years.
Time will decide how things go, but if I am right that True Blue is a great product, then I believe this stock will go much higher. Again, I reserve to make my judgement come July 07', it was only 6 weeks ago, everyone was congradulating themselves and the focus was on how great things were. Things change quickly, but the facts will come in the numbers. This is a growing company, a company growing its product line, outlets and sales force. Companies that are doubling their sales force tend to see sales growth. This is a healthy company and I look forward to contining to add shares each month as I believe in them and I understand numbers.
You amaze me. You talk about the idea of being on the BOD. If you think that what has happened is acceptable stewardship of shareowner's interests and shareowner value, then you might have more than just a little trouble getting elected.
I sometimes wonder if you are McRae's brother-in-law or something. Instead of seeing a serious problem with the way this CEO touted shares when the price was double its current levels -- and then provide no follow-through when shares were collapsing -- you make it sound like he's done things right. I am sure you are interested in your investment, but shareowners have every right to be angered by what has happened.
If you want my vote, you ought to be upset. There were some other guys like Ebbers and Nacchio who took lightly their treatment of shareowners too.