ARUN is a textbook example of what is wrong with corporate America. The BOD is simply a mouthpiece for the CEO, in this case, to the detriment of the shareholders. As such, there is nothing the shareholder can do except to treat the stock as a short term trade, and not a long term holding. Orr is 62 and he'll probably retire in short order and go live on a south pacific island that he can buy from the wealth he has amassed at the expense of shareholders-and he couldn't care less. Problem is, he'll be replaced by another of the same ilk. That's one reason I'll never be a buy and hold type of investor.
You missed by a day. Ole' Dom sold 100,000 shares Tuesday and 100,000 shares yesterday. Nice to see that at least someone is making a killing on this stock.
Good luck, but I have a feeling you'll be able to buy more in the mid 15's in the next day or so. Once it breaks support at 15.97, it could free fall. On the plus side, it's approaching oversold levels on RSI and STO technicals, and historically that's been a good time to buy.
I don't think wall street has sold this off strictly on margin issues, as that appears to be a temporary issue. I think institutions(and they are really the only ones that matter), just like retail buyers, are fed up with Dom and his cronies using this stock as their own personal ATM. Until that changes (and I doubt it ever will), this will continue to be a great trading stock.
Stock based compensation has always been the issue with ARUN, and it is unlikely to change. For that reason, it will continue to be a 'buy the dips, sell the rips' kind of stock. As someone who is not a buy and hold type of investor, it's been a good trading stock for me. As for long term value, why should I commit to the long term if management clearly has not.
Looks like the FCC Chairman wants to spend 1 billion per year in 2015 and 2016 on connectivity for schools and libraries. This could be quite a catalyst for network stocks like ARUN and RKUS
Wi-Fi was a big topic of discussions in multiple institutions of our federal government on Friday. Federal Communications Chairman Tom Wheeler unveiled a plan today that would put $2 billion in federal dollars to work building Wi-Fi is classrooms and public libraries. Meanwhile over on Capitol Hill, U.S. Senators Mark Rubio (R-Fla.) and Cory Booker (D-N.J.) introduced a bill that could help open up new spectrum for Wi-Fi networks.
Wheeler is calling for new rules to the government’s E-Rate program, which was established 18 years ago to bring internet connectivity to schools and libraries. The program largely accomplished its mission, delivering broadband access to 94 percent of U.S. classrooms and 98 percent of public libraries, according to the FCC. But when the rules were originally written, they didn’t anticipate the wireless connections most devices would need to make that final hop to the internet.
I was thinking more like Elliott Management. They've recently been active in this segment.
The board is hand picked by Orr. If they didn't tow the line, they wouldn't be on the board. What this company needs is an activist shareholder who demands a seat on the board. Until that happens, Dom and his cronies will continue to abuse the shareholders, with an occasional buyback to throw them a bone.
They deserve it! If Dom could get me a 400% return in a couple years, I wouldn't complain about his total compensation. In fact, if this stock ever gets back to 25, I'd be happy. If and until it does, neither he nor his executive staff deserve the kind of compensation they are taking for themselves.
After shareholders overwhelmingly rejected the Executive Comp Plan I also expected changes but it hasn't been the case. I suspect the initial change will be that it will no longer come up for a vote, or if it does, the shareholder will be able to vote FOR or ABSTAIN, which is the way RKUS handles the issue.
I was very encouraged when Elliott Management became a shareholder in RVBD. Hopefully someone like that takes an interest in ARUN, but I'm not holding my breath.
You are correct about Orr. What is interesting to me is that another CEO in the network space, Selina Lo of RKUS is also one of the least friendly CEO's and she considers Orr a mentor. Judging by it's stock price, he taught her well, and both companies use 10b5-1 plans as their own personal bank accounts. On the other hand, Pera at UBNT is one of the most shareholder friendly CEO's and his company's stock price has gone up about 400% in the last year and a half. He has borrowed money to buyback shares, and he has been personally accumulating shares instead of selling.
One CEO cares about his fiduciary responsibility to shareholders and the other two consider them to be little more than useful idiots
On the flip side, thankfully the company has had a robust share buyback plan for the past year and a half. Without it, this stock would be trading in the low teens at best.
CFO stated that they would have beat their guidance even if they didn't go after the lower margin business, but wall street doesn't care. I'm curious as to why they aren't buying back more shares at these levels.