Fairgame -
on the other side a CEO with 37% stake in the company still has not absolute control but a much stronger incentive to actually care about the stock price as it represents a significant portion of his wealth (I assume...). Trying to sell the shares (to make a quick buck) would end up in a much lesser return as it would most likely lower the price per share quickly and would only make sense if he is convinced that there will not be any long term success (which, of course, is a possibility).
Right now his Preferred Shares are not worth much and his ownership with common shares is almost non-existent so why would he care about the share price now.
I do agree, that a return of ~$7,500,000 for an investment of ~$500,000 is on the high side especially if compared that stock sales overall contributed ~$7,400,000 to the overall value of the company now. Given this ratio the reasonable share for him in this company should be anywhere between 10-15%, not 37%.
So, whether to hold on to shares already owned now depends on what you think the intentions of CB are and whether you can settle for the loss of >30% ownership.
Cheers
