So the past 2 dutch auctions have provided long term holders the opportunity to sell their shares at .70 and repurchase at .67 for a 4.25% gain or 9% overall. I have followed this and will continue to put all my shares forward in any future dutch auctions.
I have held a long time and my average cost is now below .30 from buying and selling over the years.
Personally I could care less if I owned or didn't own my shares (mid 5 figures) and if they get bought out and I cannot purchase back for about a 4% discount then to bad.
I have become totally disenchanted with the company due to the go mistakes made by management purchasing crap companies when all they had to do was stick to the core business making lots of money and buying up other registrars and dominating the industry.
They now seem to recognize that the business can earn lots of cash flow and have a plan to steadily move out the smaller shareholder and eventually privatize. Every dutch auction or open market repurchase increases along with option grants increases control by management and friends. They have reduced total outstanding shares over 10% so far this year while options have increased their holding about 1.5%
I still would recommend purchase in the below .70 range provided you have some tolerance for risk, as a decent reward is possible going forward. Risk is still there however as there is always the possibility Noss and Cooperman (who I believe are bright guys) could still get carried away and make another stupid investment as in the past.
Oct 27, 2010 DIKER MANAGEMENT LLC Beneficial Owner (10% or more) 2,500,000 Indirect Sale at $0.70 per share. $1,750,000 Jun 11, 2010 NOSS ELLIOT Officer 13,100 Direct Purchase at $0.68 per share. $8,908 Jun 11, 2010 LACUNA LLC Beneficial Owner (10% or more) 2,009,400 Indirect Sale at $0.70 per share. $1,406,580 Jun 11, 2010 RALLS RAWLEIGH HAZEN IV Director 2,009,400 Indirect Sale at $0.70 per share. $1,406,580
Nice to see that when you need some ching, you have your .56 stock options to sell for .70 per share. Right boys!!!!!! Destroy your credibility for .14 a share. NICE!!!!!
I own this stock too boys. The only opportunity here is for management to boost their stock bonus. They disclosed on last years annual report incentive stock bonuses of 7,203,977 shares that have an average share price of issuance of .56. You do the math. They issue themselves 7.9 million shares and they tender buyback 3.9 million?
The program supports the bonners of management. What is wrong with this picture?
I commented on this Sep 15th in another thread in this board. I do agree the management has made mistakes indicative of the early dot com era which was unacceptable as far as I am concerned.
I still stand by the assertion that there is a potential management move to take Tucows private. This reminds me of the Corel privatization and subsequent resale. They keep buying back stock and diluting smaller shareholders voting power in the event this is Noss's plan. The institutional holders and insiders are either close or at 50% at this point. That is fine by me, since I am on record over time saying that this is a potential outcome, at which time class action will be in session for all of us long term, disappointed shareholders and we will get fair value for the company. Of course in that scenario the attorneys get quite a lot but I gather there are some recent graduates of law school who would love to try a case like this. I'll be searching for just those people if they try a public screw of us smaller players.
That said, I would sell my shares for $10 as Mark Cuban said Tucows was worth a long time ago.