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Seitel, Inc. (SEI) Message Board

  • seismickid seismickid Dec 13, 2002 7:45 PM Flag

    New CEO

    To all you Sleazetel Hypsters:

    I have one comment. Larry Lenig is known for taking a company into bankruptcy (Grant Geo)and others. Loser co hires Loser CEO Think about it before you buy this dead POS!

    IMHO

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    • What "others"? His most recent position was President of NA Operations at Paradigm Geophysical; which looks very closely related to the type of business at Seital. He was CEO of Grant in 1997-1999, and yes he lead it through bankruptcy. That experience also will serve him well; he has dealt with tough creditors and knows their language. But read his work experience and then his PR comments when he was hired here; I don't think he would have been so enthusiastic if he were hired only to take the company into bankruptcy

    • "I have one comment. Larry Lenig is known for taking a company into bankruptcy (Grant Geo)and others. Loser co hires Loser CEO Think about it before you buy this seismickid"

      Just curious, are not the shareholders left with an empty bag after most bankrupcies? Do not insiders and 5% owners hold 33%?

      • 1 Reply to m2bq
      • <<<Do not insiders and 5% owners hold 33%?>>>

        Don't bet the farm on numbers you see in Yahoo profiles. The information is wrong or hopelessly outdated far too often to be considered reliable. Pearlman and Frame, who are no longer with the company, were the only insiders with a meaningful amount of stock. Both had been dumping stock for a year before leaving the company and there's no way to tell what they've done with the remaining shares since then.

        The Yahoo numbers include millions of options that are so far out of the money there isn't a chance in the world they would be exercised. There is/was a couple of 5% institutional holders, but I wouldn't treat that as being on par with insider ownership. Especially considering Chapter 11 would pretty much void the pending shareholder actions against the company. The derivative action might fly, but that would just put a few extra bucks in the creditors pockets.

        Insiders still with the company own around 1/2 of 1% of the outstanding shares. And, in answer to your first question, yes, shareholders are left with an empty bag after most bankruptcies. Not a lot of downside for insiders, but Mellon Bank and Dimensional Fund got clobbered pretty good.

        I don't know what kind of business plan Dimensional Fund has, but it can't have anything to do with making money. I don't think I've ever seen a good pick from them, but they do seem to have a lot of Seitels to their credit. I've even seen then try to average down AFTER Chapter 11 was filed and the assets were about to be sold off to cover DIP financing. Oooof!!!!