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CLRS Message Board

  • tex7779 tex7779 Apr 18, 2001 10:43 PM Flag

    The 10K filed by CLRS on 3-21-2001

    IP, Mac, BigCLRS, Uptick, Avgary, Kappa, Eduard, et al:

    If I have missed any other CLRS long who has posted here, consider greeted as well.

    I am a long in CLRS since Q3 of 2000. I have been reading many of your posts but have not posted much myself unless I saw a specific need based on timing or a question raised by someone on this board. This brings me to this post, which I feel compelled to share with those who are truly interested in the value of our shares in CLRS to go up.

    I have seen a number of posts regarding the various lawsuits filed, including today's comment from a clear short, buyerbeware, regarding some rumored lawsuits. If you look at the 10-K which CLRS has filed on 3-21-01, on the document page 14, which is page 21 of 80 if you print out the whole thing, the company states that 14 class action lawsuits were filed, and that they ALL have been consolidated into one case in the United States District Court of Northern Georgia, Case number 1:00-CV-2841, pursuant to an order by the court on November 17, 2000.

    Therefore, any posts from any short or other similar ilk, regarding rumors of other lawsuits etc, have about as much credence as the rumor that I heard from my neighbor's 10 year old son, that CLRS is going to buy out Microsoft. It was a rumor, no doubt about it, and so is buyerbeware's rumor.

    A second major point I wish to make is the statement that CLRS makes again in their 10K, on screen page 16, which is page 22 of 80, that as of March 13, 2001 that there were 155 holders of record of the common stock. Let's look at that number. According to the web page as you look at a specific stock, and then institutional ownership, we see that the largest is Franklin Resources, followed by the State of Wisconsin, etc, etc. I count at least 40, perhaps more different institutional investors. So that leaves us with 155 - 40 = 115. Next, on their 10-K, on page 51 on the screen, or page 63 of 80, the discuss their Employee Benefit Plan, under which 750,000 shares are set aside for non-executive management employees to purchase the company stock at 85 % of market. According to that paragraph they state that since that program was started on 6-13-2000, 69 employees in the US and 20 in the UK, have bought stock as of 12-31-2000. To keep my math simple, let's say they picked up one more, to a total of 90 participating employees who are also stock owners. That would now leave us with 115 - 90 = 25 share holders. As we look at the CLRS web page and the list of Executive Officers I count at least ten, who are probably share holders as well. That leaves us with 25 - 10 = 15. Take away the board of directors of 5, and I see 10 stock holders of record who are truly outside investors, like myself. This seems rather bizarre. Perhaps, others can straighten me out if I missed anything.

    Got to go, it's getting late.


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    • Tex, nice work on the 10K details. Ususally cases that are based on similar grounds are consolidated into one with the attorney representing the most shares designated as the lead attorney. I expected this, but had not seen it. The good news is if the judge finds the suits to be without foundation, he can dismiss them and they all go away in one fell swoop. The key is which judge we draw, let's hope he is pro-business and not some idealist left over from the 60's trying to bring all private enterprise to a halt in the name of Lenin, and Chairman Mao.
      Market is holding up well given the big profits yesterday. Tonight's MSFT report will be key for tommorow and determining whether we sustain this rally, or give it all back. The language may be even more important than the number. Most investors know it will be the second half before we can see any real gains from the damage done. Since we supposedly price for 6 months out, if MSFT is as upbeat as INTL was and says they also see stabilization we could continue the momentum.
      OT--kappa, I was primarily trying to identify you as the board "sandbagger" with that humble touch you supplied in your post. It was a long time ago I mentioned that. Thanks, we will do that later this Spring, or Summer.
      Beertipper, are you back from D.C. yet? I know you had a gun to Alan's head yesterday, or his balls in a vice to get that rate cut! Hope you told him this didn't make is even, the damage he did will take a long time to heal. Noticed today that Mr. "I don't let the stock market influence our decisions" stated that one of the reasons for the cut was the effect the weaker equities markets were having on consumer spending. Wow! Can you believe anything this guy says? His "irrational exuberance" tirade and now this, and on BOTH occaisions he said it has no effect on the decisions the Fed makes.

    • Your shares are not counted as an individual. They count the broker/dealer as a whole. For example if I own 500 shares through Schwab and you also own 500 through Schwab that is still only one holder. I hope that helps.


    • Interesting post. My guess is that the 90 employees in the Employee Benefit Plan are counted as 1 since the plan is administered by an institution - which really changes the number of shares available at the end from 10 to 100. I own mine through a small firm, and I know 3 friends who are long. It would appear that we've figured out that it's primarily institutions being counted.

      Good inquisitive post though.

    • Tex. Glad to have you on board. You may have missed the first run but hang on you will not miss the second. Regarding shareholders of record. My stock is held by Schwab and in "street" name therefore I am not a share holder of record. "Street" name is brokers name. IMHO Shares held in brokerage accounts are not held in individual names. If you hold shs. at home in your name you are share holder of record.