In the past few weeks while CYAN ahas been taking a bit of a "header" surrounding the CEO news, the two probably most comparable names have made breakouts to the upside into new 52-week high territory.
WNI now is trading just sub-$9 up from the $8 area that it traded around from mid-December into the end of Feb.
Also, NTY now is trading around $50 compared to the $45 area where it traded for the past few months.
I think that once we get this issue behind us (admittedly, not likely at least until the 10-K is filed and the Q4 reported in May, we should start to make up for lost ground.
Of course, they could surprise us and announce a new CEO appointment before that, but prior history has shown they are not quick to make such decisions, and I think it is especially difficult to recruit a CEO to HI.
Do you think they'll be able to recruit another quality CEO after how it appears they screwed Jacobson out of his options?
I have a feeling they're planning on giving the job to Rosenthal, but I think the last thing CYAN needs is another accountant running this company. It looks like the Ron Scott days of the mid-1990's all over again...No marketing, no branding, and no direction.
If he were let go "without cause" (usually defined in the contract) then the joint "keep quiet agreement" that is evident would have to include some payment from the company to compensate him for the lost value of the options.
Normally, this would need to be disclosed in the financial statements/footnotes except for the fact that the amount likely could be considered to be not "material" (again, a word with a specific accounting definition).
Can they attract a quality CEO? I think it will take some time but I think there are enough people out there who want to tto be a CEO, who could be attracted to the lifestyle/environment of HI, but it won't be everybody, and I think it will again take time...to the detriment of shareholder's hope that the value creation process that seemed to be underway might continue.
I think its a setback. The stock price seems to agree.