Hey _gal, that is the 64K question (or should I say 401k question). Earnings looks like the tortoise to me, very slow and steady... "frothy" is not anywhere to be found in the filings, although I agree with the "unplanned" separation hypothesis. Any bookkeeping/scandal based reason for the exodus would indeed be very bad. However, this company's books are about as plain vanilla as it gets. Also, David Pointer has a reputation for being a straight shooting, stockholder focused guy, but ya never know...
All we got to go on is:
1) The tone of Scotty's bye bye, which sounded to me like somebody who got their feelings hurt and defensive. was he fired? was his results below expectations? was there a buyout discussion that fell short of what he felt his years of effort were worth? did he #$%$ off a very important client? personal issues?-- time will tell, but whatever it was, a few old-timer board members agreed with him and left with all of their out of the money options. board room politics or omen of big undisclosed problems?
2) This is clearly David pointer's company. He brought an interesting choice onto the board last year... lee keddie, a guy who took a "this stage company" and grew it 8 times the size in a few years. was there a new direction/power sharing disagreement? --a more likely scenario to me. more telling is lee is now the interim ceo guy
3) Full year earnings and revenue should be the best in years. organ procurement business seems poised for explosive growth.
4) Its been 10 days since the flush out and no news. could a super bad thing be kept out of the news this long? no perp walks, lawsuit filings, leaks, short squeeze assault.
Mr. Lee Keddie joined the board in October 2014. Mr. Keddie transformed HKX Inc., a hydraulic components startup, from $1.8M revenue and 12 people, to a nationally recognized niche market leader with $18M Revenue, 55 employees, and 24% free cash flow. He built a sustainable competitive advantage, leveraging technology, systems and leadership to produce a highly scalable business model with Gross Margins above 50%. Prior to his business leadership roles, Mr. Keddie spent over 8 years as an Aerospace Engineer in both the Commercial and Military sectors of the Aircraft Industry at Boeing, McDonnell Douglas, Bombardier, Learjet and Qantas Airways in Australia. He is a professional engineer and received a Co-op Mechanical Engineering Degree from the University of Waterloo, and spent two additional years at the University of Toronto in Aerospace Studies. Mr. Keddie is a pilot and a member of the Experimental Aircraft Association.
His plan was good but his pace of execution was slow (, but steady). David certainly had a plan in mind when he brought all the company's bank notes and non-common shares. Would seem that Scott's growth pace was unacceptable to David...
Will be interesting to see if his next moves are beneficial to shareholders or just his financial consortium. His track record would suggest the former while any seasoned penny stock investor has reason to fear the latter.