Absolutely not!!!! You can count at least 7,500 shares as voting no. And I assume I won't be the only one . . .
nclag, I nominate you to serve as lead plaintiff. There is no one who is more knowledgeable about, and knows more about the potential value of this company, than you. I hope you have spent your time off from this board over the past couple days interviewing law firms . . .
I am actually quite hopeful that this deal will either be restructured as a result of the shareholder lawsuits, or voted down by shareholders, as the proposed purchase price is grossly insufficient. Call me crazy, but I have been accumulating at the money calls in anticipation of a higher sale price.
My understanding is that this deal requires approval of the shareholders of Aruba Networks. If and when a majority of the shareholders votes to approve the deal, you would receive $24.67 for each share (at the effective date). If held in a brokerage account, the transaction should occur without any commissions or transaction fees being deducted.
Generally speaking there is a small differential between the share price before the effective date and the buyout price representing the time value of money and the possibility that the deal may or may not happen. If you believe this is a done deal, and that there is no real possibility of a higher buyout price, you may simply want to sell at this point and invest elsewhere.
If, on the other hand. you believe, as I do, that the proposed sale price of $24.67 is grossly insufficient, and that the Board of Directors of Aruba Networks has breached their fiduciary duty to act in the shareholders' best interests in entering into the merger agreement with HP, and has instead put their own financial interests ahead of those of shareholders, and you believe there is a chance that another suitor may become involved in bidding for Aruba, or that shareholders may obtain some traction in the Courts in their attempts to have the company "shopped around", then you may wish to hold on to your shares. HP is not getting my shares for $24.67 without a fight. I, along with a majority of ARUN shareholders, voted no in 2012 for CEO Orr and Director Guidon's re-election to the BOD, because of the fact that they continually put their own interests ahead of those of shareholders by treating the company as their own personal ATM machine, and I am hopeful that once again I, and a majority of ARUN shareholders, will vote no to the merger. I cannot think of one legitimate reason to vote for this "sellout" by management. Mr. Orr can choke on this deal as far as I am concerned.
Continued - Part 2
For THREE LONG YEARS since writing that post, many of us stuck by this Company, through thick and thin (and there was a helluva lot of thin!!!), convinced by countless hours of our own personal research that Aruba’s superior technology would ultimately win the day. In bitter irony, just one trading day before announcing the HP deal, mgt finally delivered on its promise of increased operating leverage and profitability with a stellar earnings report which showed great promise for the company and its shareholders! Then the sellout!!!
I sincerely hope that all other shareholders who stuck by this company through very difficult and challenging times, whose potential profits are being stolen from them by this traitorous Board of Directors, are similarly outraged at Messr. Orr and the BOD's blatant breach of fiduciary duty to their shareholders. The BOD is selling this company to HP for less than I paid for some of my shares in the summer and fall of 2011, and for significantly less than numerous Wall Street Analysts had valued the company based on future earnings potential and expectations.
This deal is so rotten for shareholders, I can only hope that it is torpedoed, similar to the November annual meeting, where a majority of shareholders did not vote for Messrs. Orr and Guidon’s re-election to the BOD. The company has put out all kinds of publicity pieces on how great this merger will be for Aruba Networks. I agree wholeheartedly will all of the points. I think it is a great combination. But give me ONE REASON why this merger is good for Aruba shareholders! NOTHING! ABSOLUTE RADIO SILENCE! That speaks volumes.
Mgt. & BOD's track record of treating shareholders like dirt remains fully intact. Apparently unhappy that their ridiculously excessive stock-based compensation plan had to be trimmed after Chmn. and CEO Dominic Orr & Lead Independent Director Guidon received a stunning vote of NO CONFIDENCE at the shareholders meeting in November of 2012, and that he could no longer use the company as his own personal ATM machine, Messr. Orr has now committed the ultimate act of betrayal, selling long-time, loyal, shareholders short (some of the most vocal cheerleaders of the company and its business), while enriching his own coffers and ensuring for himself and other insiders what will no doubt be an extremely lucrative career at the new company, at the very moment the company was able to demonstrate the increasing operating leverage that Wall Street had demanded.
In April of 2012, I wrote the following on this board: “While one could make an argument that ARUN, the company, is outperforming their peers, that outperformance unfortunately has not yet flowed to the bottom line. This has been a source of great frustration for me and many others. It seems paradoxical that the company could be in the sweet spot of a massive secular growth trend and yet shareholders have not be able to benefit from that position (at least more recently). I am extremely disappointed with management's inability to translate increased revenue growth into increased profits. Until we see improvement in the bottom line, I am afraid the shorts will continue to have a death grip on this stock.”
Continued in next post . . .
ARUN has $300 million in cash and short term investments, which is part of the deal. This money will not be paid out to shareholders as some type of special dividend as far as I can tell.
I can assure you that I most certainly will be voting no with the 6500 shares I currently hold. This deal requires shareholder approval and those voting yes should have their heads examined. This is one of the most blatant breaches of fiduciary duty I have ever witnessed. Dom and his cronies sell out shareholders to assure themselves of cush jobs with the new entity, no doubt with huge options and incentive payouts down the line, adding value to HP at the expense of loyal Aruba shareholders who have been #$%$ on for years.
Since the announcement I have been building long options positions at various expirations in the $24 and $25 strike range on the hope and expectation that someone else sees the value that mgt has seen fit to give away to HP shareholders and puts an end to this nonsense, either by rejecting the proposed merger (shareholders) or making a competing bid (IBM, MSFT, etc.).
Very interesting nclag. I already own a small RKUS position which I purchased a little while back at $12 which I have ridden down and back up now, but was also considering HIVE, due to its positioning in the Gartner and Forrester quadrant/wave. I think it went public at either 8 or 10 and its value has been approximately halved since that time. The wireless networking sector has been so much out of favor it just boggles my mind. I am not so much interested in HIVE for its earnings potential, viewing it rather as a potential takeout target. Like ARUN before it, I think you need to reach a certain critical mass in this business before you can generate the operating leverage necessary to make money,and HIVE is not even close to the scale of ARUN. But with the technology in the right hands, I think it can be probably be levered into a cash printing machine.
Congrats NCLAG and all other longs on this board!!!!! We all deserve medals for our patience and bravery (or stupidity, I am sure some Opal and some others would say), in sticking with this stock. This past couple of years has certainly taught me that at least in the short term, it doesn't matter how good a company's business is or their products are, as a small investor in a small company, you are subject to the whims of all kinds of hedgies, mutual fund managers and other market manipulators intent on lightening your wallet.
It appears as though the long thesis may finally be playing out. Nevertheless, I have lightened my load considerably today, by a little over half, to lock in gains (or recoup losses, if you prefer), from the most recent absolutely brutal and merciless pummeling I received for no apparent good reason after November's earnings announcement.
As an investor in ARUN, I have become more cynical then ever in my view of Wall Street and the lack of transparency one faces as an individual investor. Getting absolutely crushed because FMR whimsically decides to liquidate the stock you own (not once but TWICE with ARUN), and not finding out why you lost your shirt for apparently no reason until three months later (while I am sure all variety of market makers and insiders are making a killing off of your misfortune), is no fun indeed.
I will be savoring today's gains over the weekend, with full knowledge that the crooks and market manipulators who may have taken some losses in this stock today will be beating down my door to get their money back in the very near future.
Good point. Selling some now to lock in gains, with the potential to pick them back up on the cheap if we drop after earnings are released, is probably the most prudent strategy.
All this acquisition talk is making me nervous that this quarter's earnings may not meet expectations. To me, the idea of leveraging Aruba's technology with HP's global sales force, channel partners, access to capital, etc. will ramp up the sale of Aruba's networking products tremendously, far greater than if Aruba were to remain independent. But management has always been steadfast in their pronouncements that they are not looking to be acquired.
If that has suddenly changed, I am concerned and asking myself why? Yesterday's pop certainly was nice, but I don't want to be giving it back if there is a miss tonight and the HP deal never materializes. Given the revenue and earnings growth over the past couple years, including forward projections, and given the meteoric rise in the overall market and the Nasdaq over the past couple years, one would expect Aruba to be trading North of $30/share, or even higher. I can't imagine that Aruba's board would entertain offers for much less, unless the growth/earnings outlook is weak. On pins and needles waiting for tonite's conference call.
Nclag, could you comment on the ALU tie-up and the complications that could pose to an $HPQ merger-acquisition?
I'm not going to lie, I am scared to death about earnings. Having been majorly singed after last quarter's report, which was seemingly outstanding, I don't know what to think.
Seemingly, competitors have had a mixed quarter. Whether RKUS missed on revs because schools have put purchasing on hold due to ERate funds coming online later this year, or dollar strength impacting earnings/sales, or whatever else, it doesn't seem like any competitors had a blowout quarter.
This sales force fiasco has me on edge. Supposedly the VP for NA sales left. This was never publicly disclosed, as far as I can tell, but was confirmed by NCLAG. There was a press release the other day about Aruba's former sales director from the Mountain Region taking a new position. How many others have bailed??? Is it strictly a compensation issue, or a reflection on future sales prospects???
Very concerned about the weak bookings report inadvertently released last quarter which showed a huge drop in bookings last quarter. This is probably why the stock tanked, although I'm not sure.
Also concerned that the Company didn't increase buyback authorization back when we were in the Fifteens. Lack of confidence, at least in short-term?
All kinds of concerns have me worried, along with the fact that even a slight miss in any category - eps, revs, margin, guidance, etc. could send us back down to the low teens.
Anyone wish to weigh in on where they think we will close on Friday afternoon?
Ok, well just figured out why we tanked for no apparent reason after last earnings report. More price manipulation by FMR, selling over 5 million shares. You can be sure FMR and/or FMR insiders were the ones making the huge downside options bets while they were selling off their holdings, tanking the stock price by over 30% for no apparent reason. I am sick and tired of being fleeced by these pirates. This is the exact same thing they did a couple years ago, when they tanked the stock to $12/share, profiting all the way down and then up again, I am sure. Fundamentals and technicals mean nothing, it is all about the big boys manipulating the stock price. I would like to see some of these crooks go to prison