In analysis of HSKA. It is more important to
witness the actions of insiders, than listen
In 2010 the company put forth a shareholder
proxy under the guise intent to preserve NOL's
(net operating loss credits). The addendum to
the proxy was a vote to limit new shareholders
from accumulating more than a 5% stake in HSKA.
Three years later the bulk of these tax credits go
unused each year. But it is clear to see. The real
reason for the proxy was to entrench insiders from
the threat of a hostile majority shareholder shaking
Heska again showed its stripe in the autumn of 012
with the bogus small lot tender. Heska offered
$9.50/share to buyout shareholders who held less
than 100 shares. The stated reason for an exercise
that cost the company over $20/share for very little
participation, was to reduce administrative costs.
The guise of words hid the real motive.
Mgmt wanted to reduce total shareholder count
to less than 300, stating by doing so. Heska would
have the option to go private.
Heska has a history of conning shareholders.
Watch what the insiders do.....Not what they say.