One item TXCC will have to deal with going forward if they are actually going to remain a public company is something I believe Grandhip recently commented on....and that will be who the heck will believe ANYTHING that is said by current management. Would you buy a used car from Ali or Bosi?
Safe Harbor exists because there are obviously items that releate to the future that no sane person would think that management could have any control over and therefore can't be held accountable. At the same time, when management gives their best guess about what they think will occur in the near future, analysts, shareholders or potential investors have to be able to accept it at face value with the caveats that extraordinary events could occur. I have been pretty consistant in my comments that I think Ali has done a heck of a job with getting HD**** going, that it will be successful (to whatever degree) and the company will do pretty well with it while at the same time saying his performance in a number of areas concerning the day to day business pretty much sucks....
We may get an explanation about this this latest fiasco, then again maybe not. But if the company intends to attract new investors (I mean retail people willing to pay a market rate to trade or buy and hold) I think they will have some big problems as Ali has made it pretty clear he can't be believed.
"One item TXCC will have to deal with going forward if they are actually going to remain a public company is something I believe Grandhip recently commented on....and that will be who the heck will believe ANYTHING that is said by current management. Would you buy a used car from Ali or Bosi? "
This secondary offering by TranSwitch is aimed at bringing its stockholder’s equity in compliance with Nasdaq Listing Rule for continued listing in Nasdaq Capital Market In reading the pr I think the key word is aimed does not mean someone is lining up to do anything as far helping thus the 48 share price today
I have been wrong at every step with TranSwitch and that doesn't mean in my comments that I have lied or deliberately meant to deceive others. I was simply wrong. Do you think he has lied about trying to sell the patents? Do you think he has lied about the timeline for HDPlay adoption? Do you think he bought hundreds of thousands shares on the open market to lose money? Like I said before, you have a darker world view than I.
Zach's Research put out a press release a little while ago saying that TXCC had the secondary stock offering in order to meet Nasdaq compliance for stockholder equity. I don't how they know this (maybe they asked Bosi) .....but if this is correct, and this was done at the last minute what does it tell you about the competency of TXCC management? Was there any reason, given what Ali had said about revenues for this quarter (roughly same as last Q) to believe that somehow management thought enough cash would be generated in order to meet this standard for compliance? Do you think that perhaps this was something that Ali or Bosi might have thought would be something shareholders might want to know about? I'm just asking.
You either misunderstand or are misrepresenting my views in my opinion. Yeah, I am certainly cynical. Let me put it this way: Have you ever had to lay someone off? Not fire, lay off a 1st class employee. Or worse, lay someone off who you had recruited from another firm to come join the company you worked for? I have. It is no fun. It's even worse when it's someone you know well who has a family and you just screwed up their life and they telling are you "Thanks a lot". Do you think Ali enjoyed laying off TXCC employees? I don't. I think he waited as long as possible hoping business would improve so he wouldn't have to authorize it. I have mentioned this on more than one occasion. But guess what....it is business and it has to be done sometimes, being ruthless on costs is the only way to go. In this regard Ali and I are the same. If I didn't lay people off I would have been fired and same would go for Ali, as he is an employee who serves at the pleasure of the BOD (Chen and other Steinhardt folks) and they want to make money on their stock. So does Ali. In that regard as shareholders we are expendable. Simple as that. I have little doubt Ali would like a $10 share price and we all get rich, but he will protect himself first.