I thought employee stock options were meant to protect the share value, but if employees are the ones sparking off selling on a good news, then take their options and hand them a pink slip. Different companies utilize their cash in different ways. Like with the cash form a gargantuan contract, a Google would invest in a new service, Phillip Morris might increase the dividend. Valero does buybacks. I want to know where does SAIC money goes. I am not alleging that it translates to fat bonuses for management, but I would be curious where it went if I don't see any stock price improvement.
SAIC has aquired a half dozen companies in the last year
There were also cash outlays post-ipo, e.g., getting the compensation plan squared away
There were some killer taxes last year as we reorganized post-ipo having to do with paying the one-time dividend to employees
There was a stock buyback in December
"I thought employee stock options were meant to protect the share value, but if employees are the ones sparking off selling on a good news, then take their options and hand them a pink slip"
I thought stock options were motivation to work hard so that the stock price rises so the delta between the option and the current price is as large as possible so when I exercsie the option and sell the stock, I can buy a boat
How odd: you would reward an employee with stock options then fire the employee for exercising the option and selling the stock? Or, to say it another way you'd pass out stock options but never allow the employee to sell the stock?
I think we are still in the shadow of the IPO - the stage is still being set: the public needs to be made aware of SAIC, the analysts need to learn the niche that SAIC operates in
And, based on a low $17 purchase price in October, the stock has appreaciated 10% in 6 months - I think this is good, not bad
I don't know about your company, but my company's options to employee come with strict lock-in dates and holding on to the company's stock is considered indicative of faith in the company. If I were to believe that company is competent on operational front, then it only means management is incompetent in the wall st games. If you as an employee think that not many analysts have noticed this company, who's incompetence do you think is at display here, that too after an award of $6.2 B contract!! How often have this company been represented/featured on CNBC, Cramer's show.