An added note: Michael Davis became a board member in 2003, Gregg Robertson in 2004. I now doubt that it was Robertson calling the shots regarding the firing of Andy Jacobson in 2010 given the recent exposure of Davis as the villain in the Meridian litigation.
At the time Jacobson was terminated (just days before he was due a bonus and vesting of another 20% of his stock options), the company was performing incredibly well. The Board chairman at that time, Gregg Robertson (who was previously the CFO of Dillingham Corporation - a construction company mired in litigation over construction projects in California) refused to answer my requests for information about the firing. His buddy David Rosenthal was then appointed interim CEO. Neither Robertson nor Rosenthal owned more than nominal amounts of Cyanotech stock, so I was quite concerned about their activity. I then exposed Robertson's connection with Dillingham on this message board (the posts appear to have been removed by Yahoo at some point), and he resigned shortly thereafter.
I think it's sad that someone so passionate and qualified in his work is unable to boast of his accomplishment of turning Cyanotech around, out of near bankruptcy and into a rosy future.
I don't see how a delay in the case would be good news. I only see higher attorneys' fees and a further setback for the correction of the damages caused by Davis' actions.
I sure would like an explanation on why inventories continue to skyrocket (up another $500,000 since the end of the prior quarter). Management continues to blame declining sales on weak production because of the weather, so why aren't inventories declining?
An appropriate excerpt from a Yahoo article about failed corporate mergers:
Two: And speaking of desperate, Wall Street bankers are emanating more than a trace of that too. Business is dismal across the board on Wall Street, which means that fee hungry M&A bankers—feeling ever more pressure from their bosses—are proposing all manner of hair-brained deals to corporate executives. These bankers, aka salesmen, can be a persuasive lot, and unfortunately they sometimes manage to convince CEOs to try to do a deal they shouldn’t.
The SEC needs to get involved in this. If they make the decision on guilt that would save the company from paying a lot of attorneys' fees for the BOD to get the answers it wants to hear.
Nice to see this finally on the right track. Been suffering with this for a long time. A couple more good quarters, and I think this could double from here.
I couldn't read the article without subscribing, but the headline erroneously indicated that Cyanotech was embroiled in litigation. I don't think Davis can look to the company for defense of his actions in this regard.
The only CEO that performed for this company was Andrew Jacobson. He oversaw a return to profitability and a near quadrupling of the stock price. I don't know whether Bailey's hands were tied by Davis and his BOD, but I saw no meaningful positive contribution under his leadership.
Wow! The implication that Davis indirectly controls the shares owned by RSF! It's so easy to file a complaint with SEC, and Meridian has already done the work.
There must be more here than meets the eye. Why would Davis want to exercise this much control over the company? Could he be getting some other undisclosed benefit? He's certainly not making a decent return on the stock investment.
Not bad. Income on an operating basis of a little under 7 cents/share. Not as good as last quarter's 9 cents. Big drag from fine line, but clean this up and add a couple more customer wins, and we could see double digits.
It's a matter of integrity. If this is the light that Mr. Klenk wants to be shone in, then the shareholders he works for will suffer along with his future & legacy as well.