Red, it is a little more direct (Premier purchase). The business was owned by Heartland insiders and was purchased with treasury shares and cash. With no disclosure whatsoever of the financial information regarding Premier's business, one could more easily than not believe that this transaction was much more beneficial to the prior owners/insiders than to the minority Hearland shareholders. This situation highlights the problem with lack of communication from management. Anytime that the details of the company business are hidden from us without any obvious or stated reason, it is natural to assume that something devious is taking place. Just because the insiders own over 50% of the stock, they are not thus relieved of their fiduciary duty to the minority shareholders, nor does it eliminate their obligation to inform all shareholders of all material events. If fact, I would argue that owning a controlling interest would increase managements duty to inform, especially when engaging in transactions with insiders such as the Premier Homes deal that could very easily be construed as a conflict of interest, at best.
JMO, Magic
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