Meru Networks, Inc. (MERU)

[shmolton]

Post of mine from another board, from discussion regarding the RSU's...

...any thoughts would be appreciated...

shmolton Member Profile shmolton

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Tuesday, February 28, 2012 12:46:14 PM
Re: iconoclassic post# 316444
Post # of 316455
RSU's MERU...

...I was looking through their older filings and they have granted RSU's before but never with that wording attached. The stock has jumped nicely today after those filings, with significant bids pushing the stock up all day. There is speculation that the company is a takeover candidate...the venture capital firm who has recently increased their holdings to 11% specializes in mergers and the director they have on the board has also bought over 100k shares recently. If they knew the company was going to be acquired, they couldn't be buying, could they? Wouldn't that be insider trading? I'm sure there's ways around it, such as buying before they start shopping for a buyer? There are thoughts that the "vesting on change of control" clause was put in there in case they are acquired.

Regardless of what is really happening, somebody wants the stock, because there have been consistent bids moving the stock up low floater style, since the insider buying in the 3's. Could be shorts too, as there is a large short position and the stock doesn't trade that much.

They did announce in their last ER that they had doubled the headcount of their sales staff...perhaps that has been paying off and that's why they are buying?