Tallywacker sounded good pumping LSI on Cramer today. Let's examine the real Tallywacker 7 year track record as CEO and the LSI buyback plan...
May 24, 2005 - $6.43
May 23, 2012 - $6.93
7 year gain = 7.7% (about 1% annual gain!!)
Tallywacker claims that the $1.7 billion stock buyback in the last few years was for the shareholders. What a joke!! Here's the real Tallywacker buyback plan...
1) Buy LSI stock at inflated values (check the record for the historical average purchase prices)
2) Give Tallywacker & executives lucrative stock options.
3) Exercise stock options.
4) Sell the stock.
Any objective and rational observer must ask: What's in it for the public shareholders?? It's a big joke!! Shareholders would have been much better off with Wilf!!
Since my post back on May 23, LSI has gained exactly 3 cents!! After 7 1/2 years as CEO, Tallywacker is still feeding like a pig at the trough while LSI holders take it in the shorts!!
LSI holders would have been much better off if Wilf had never left. At least Wilf would have had the sense to sell out rather than foolishly buy Agere.
Hang in there, suckers!!
Tallywacker Record is nothing more than a super flop film hero, flop director and a flop producer. Abhi should be voted out for good. He has no shame in outsourcing hard working US citizens jobs to India and also replacing with low paying young students with F1B visa from India, China and 3rd world countries in our own country.
Tallywacker is working on 7+ years as CEO and the stock is now back to where it was when he was hired by the BOD. How pathetic is that??
Bottom line, I never trust a CEO who sells most of his option stock. Confidence must come from the top. Tallywacker is simply a pig feeding at the trough leaving crumbs for shareholders.
Just in the first five months of this year, Tallywacker sold 4,226,000 shares of LSI and holds relatively very few shares. Apparently, for Tallywacker LSI shares are to be dropped like a hot potato!! If LSI represents so much value for the public shareholders, then why doesn't Tallywacker hold more shares or even buy more??
Food for thought for potential "investors" in LSI.
The $1.7B figure for the stock buyback is inflated. While some of the money went for lucrative stock options, the majority went for retiring over 150M shares stemming from the huge stock dilution upon the Agere acquisition. Note, that recently the over-generous stock-based compensation has started to increase the number of shares outstanding.
The following is a chart of the LSI share price and number of shares outstanding from the time Abhi became CEO. His Original (and big) sin was the Agere acquisition.
Re: "His Original (and big) sin was the Agere acquisition."
My thoughts exactly!! I remember cursing out loud when I heard the news. One of the dumbest moves ever by a tech CEO!! If us peons could clearly see the folly, then why couldn't these over-paid baffoons see it??!!
LSI should have been a seller back in '06-'07. Shareholders could have cashed out @ $11-$13 and avoided the subsequent years of grief!!
BTW -- I haven't been following LSI closely, but for several years the cumulative average purchase price was north of $6. For some reason, these morons never bought the stock when it traded in the $3's & $4's.