This is off the top of my head. Flashback 2005. Medafor's earlier management was terrible (my opinion). They raised a lot of money and spent it foolishly. Medafor was totally without money or direction. Gary Shope (GS) moved from sales to CEO. For 2005 Medafor sales were roughly $3,000,000. No money, no sales growth, no company direction, that was Medafor 2005. Medafor's value then was $0, like in ZERO. GS raised money, dilution as Stevie Wonder liked to call it. Yes, GS issued some share, quite a few in fact, but what alternative did he have? Answer: None. Medafor badly needed money to survive. It took GS about 1 year to obtain FDA approved. Amazingly fast IMO. Stevie Wonder has probably never moved anything through the FDA this quickly. GS first obtained FDA approval for Arista and then drove a sales driven machine. I think that Medafor was probably at roughly a $42,000,000 sales run rate when acquired. GS used Stevie Wonder money to bridge through the early 2008 to mid-2009 time period. Thank you for the help Stevie. Then Medafor sales started to kick in.
Had Stevie played ball with Gary, CRY would likely have had EPS of roughly $0.60 for CY 2013. CRY's valuation would perhaps now be around $15/share. But nope, Stevie's ego got in the way. He tried to take over Medafor. GS was a Division 1 quarterback. He called 'the terminate the CRY contract play'. Perfect execution. Done. He called the 'buy the patent play" Perfect execution. Done. He called the 'sell like crazy play'. Perfect execution. Done. In a mere 8 years, GS took Medafor from 2005 sales of roughly $3,000,000 to a company selling product at roughly a $45,000,000 run rate. Perfect execution. Done. The he called the 'cout de ta' play. A/K/A the 'sell the company.for $280,000,000 play'. Perfect execution. Done. Today CRY's market cap is $192,000,000, roughly $90,000,000 less than the Medafor sales price. Draw you own conclusion about management.