Buying in & TRID
India's market has collapsed 10%, driving US markets down. Also, TRID was mentioned is a Wall Street Journal article suggesting that the top executives get options with a bit of trickery.
Actually, TRID offers its executives options priced at <$1. It stinks of greed not trickery. I don't like it, but it doesn't seem illegal. Nevertheless, TRID is diwn an extra special 15%
Buying
Disney (DIS) 350 shares @ $30.15
ET 400 shares @ $23.92
More later if prices keep crashing
Actually, TRID offers its executives options priced at <$1. It stinks of greed not trickery. I don't like it, but it doesn't seem illegal. Nevertheless, TRID is diwn an extra special 15%
Buying
Disney (DIS) 350 shares @ $30.15
ET 400 shares @ $23.92
More later if prices keep crashing
posted by Andrew at
7:37 AM
3 Comments:
Question about the options granting... Do you know if they expensed these discounted options properly? While it isn't illegal to offer discounts in itself, they do require extra expensing due to the discount which would cause a hit to the earnings... If this didn't occurr properly then the SEC could fine them and they would also have to go back and restate any earnings in which they failed to expense these items. That in turn may drastically change all of their current financial metrics.
One thing I don't like about TRID is the way 4 Executives have been siphoning off cash from the company via overly generous stock options.
Here's how it works -
Options are granted at ~$0.87 each as the exercise price. And millions of options are granted. This is different from UNH which backdated and manipulated the price grants to look favorable. TRID doesn't bother - they guarantee favorable exercise prices by setting them so damn low.
The volume of options is such that they ar etaking ~10% of gross revenue per year. I don't like that one bit.
However, as for future impact, I will note that they have been selling their options aggressively for the past 3 quarters. The future expensing impact is similar to what would be the current expensing impact.
SO it's not a matter of whether they would need to re-state, it's just a matter of why the Execs need to compensate themselves with 10% of the company's sales.
I just don't like the greed and had planned on attending their meeting this week to express my displeasure. They happen to have the meeting a few miles away.
Although the decline today was mainly cuz of WSJ article,i still have dubious thoughts on TRID
If you look at insider selling, Chairman has sold 86% of its holdings, If the CEO doesnt has the confidence in its company,how can this be a long term growth
Any justifications ?
Ashish Arora(ashisaro)
Post a Comment
Subscribe to Post Comments [Atom]
<< Home