The biggest shareholder is just sitting still. Management probably ran the Cameron Mitchell idea past them. What have they got to lose? Basically, what the management is doing is betting the company, that business will not be as bad as many people believe. Both companies are profitable, growing at a rapid clip and have been through down markets before. Personally, I am very, very uncomfortable with their amount of debt and undertaking a major purchase with the market and economy declining, while costs, on a variety of fronts, are rising. Craig Miller has nothing to lose. If he pulls this off, he will look like a genius and be rewarded with options and bonuses up the gazoo, if not, he walks away with a fortune in separation pay. Madison Dearborn, with a bit less than 20 percent, could buy the rest of the company, at a reduced price and pay off the debt, if the stock tanks. The cost would be chump change to them. They could then turn around and have another IPO when the market improves.
I agree with IrishLuk about management buying stock out of their own pockets. Geez, a few shares isn't going to kill anyone and it would send a good (if token) message. The company is a small cap (and getting smaller by the day) and institutions cannot get in and out in volume without moving the stock price. The same goes for activist investors, along with the fact that they would have to buy an amount similar to Madison Dearborn to have any say. I am just surprised that no one seems to be interested in this stock/company. There seem to be no large blocks trading. Good luck, all.