Just think, if it falls through Avi won't have a real excuse for giving himself another big bonus. Of course with Avi's logic. "Well, we were going to have our first GAAP profit, so I decided to give myself another huge bonus. But that's okay, because we have a solid Non-GAAP profit."
Avi's timing on GSIT makes no sense to me. I mean he basically indicates that GAAP earnings are around the corner yet he wants to merge with a large entity with serious legal expenses and potential hazards of litigation. Avi should have waited a little longer to give us that GAAP profit, which would have given GIG a much higher PPS. GSITs position isn't going to get any better any time soon. So, what was the hurry.
This isn't the first time he has done this. If Avi wants to be listed of NASDAQ, then perhaps he should try a new approach, like making a profit.
GigOptix would also require the approval of its stockholders to increase its
available common stock and approve the issuance of shares in connection with the transaction.
Unless Avi agrees to forgo his normal greedy cut, I say the shareholders kill this deal.
The question to be answered is why does Avi want this merger? Is it the piggy bank or is it the complimentary technology? In addition, GSIT has production facilities which are probably being under utilized. GIG may have plans for those facilities. Regardless, Avi needs to get this company firing on all cylinders.
Avi's doing it again. Buying a new company. Every time he does this, I think he has some plan to combine GIG's intellectual property with the new acquisition. Unfortunately, to date this has never occurred. There are lots of reasons to believe that this newest acquisition will result in so new mega cool device that will become a huge success. However, in the past the acquisition has only served to be another excuse for Avi to give himself another huge and unearned bonus. Perhaps this time will be the charm; however, I'm not holding my breath.
And the S4 indicated 250,000 or so. The 2,678,970 makes more sense. As far as cashing out, Avi may simply want to maintain control of GIG. It also ties in with the front loading. I actually find it a relief that he has kept so many shares.That being said he owns almost 10% of the company and those shares will never be worth much unless he stops the generous share bonuses.
Rights to be the world wide distributor for a company in which one holds a 49% interest isn't exactly giving away the ranch. In addition, getting OEM revenues is much nicer than component manufacturing revenues.
Maybe this is good. For the past six years, it has always been buy or hold and it hasn't done jack. Now, GIG is close to becoming an OEM distributor for BrP and we can't be that far away from an optical transceiver on a chip. Other than the fact that we have Avi making sure we never see a GAAP profit and we still don't hve a hugely successful product launched to date, the company still has a lot of potential. Sorry, but I just don't trust analysts these days.
I recall that. My point is the #$%$ has awarded himself over 2 million shares, but appears to have only kept about 250,000 shares.
I think you're missing a huge point. Unless I'm misunderstanding the S-4, Avi only owns about 250,000 shares. If that's true, then the SOB hasn't been front loading. He has only been pizzing away the shares. What a piece of work. It's not as if his normal salary isn't enough to keep him comfortable. It's also as if he has no intention of improving the company.
Based on today's PR, apparently they do ground based GPS as well. Hopefully, they have a big market with decent margins for their new tech. That being said, they only $500,000 for it, so I doubt there are any high expectations.
BrP is not an exhibitor at ECOC 2014 (Sept 21-25). So, I assume that GIG will demo the item. That makes sense because other than in Brazil, GIG is the sole distributor of BrP products. Hopefully, this is a winner.
Tahoe's GPS Tech is for positioning space based coordinates rather than Earth based. It uses the same GPS satellites. Earth based GPS is already fully developed. In addition, Tahoe may open some space doors for GIG's tech. Truth is GIG has more potential than ever, I'm just tired of the needless dilution due to Avi's greed.
Biggest difference between GAAP and Non GAAP is the $1.1 in stock bonuses (Selling, general and administrative expense). Okay, maybe there is a little depreciation in that number. It is also note worthy that the weighted average number of shares went from 22,101 to 32,562; which is the only reason that that the loss per share remained at 6 cents.
On the positive, Avi did not say a word about the ColorChip project, or the progress with SOFI, or the fact that Tahoe's GPS tech is space based. Okay, that's all long term, but there is huge potential there. Check out ColorChip's SystemOnGlass™ (SOG™) tech.
For Q3, I'm betting that Non-GAAP is about $1 million in earnings. For Q4, I'm betting GAAP break even, unless Avi does his normal earnings smoothing routine. If Avi has a bit of sense, Q3 had better look good.
BTW that wasn't a dig at your post. I have no clue what Avi is doing and that should not be the case. The A/H never tells us about the progress at KIS and SOFI, nor has he told us why he made the most recent acquisition. It's as if he wishes to keep the share prices way down.
I don't know about the two times cash, because I still don't know the terms of the latest acquisition.
Busier than ever. However, the next CC may or may not put this on my front burner. Otherwise, I haven't forgotten this post and continue to think about my plan of attack.