Yates’ Strategy
According to the recent proxy statement PLSB insiders stock and options holdings are:
Stock: Yates = 4,211,333 shares, Sheya = 613,333 shares.
Options: Yates = 2,500,000 @ $0.10, Sheya= 2,500,000 @ $0.10, Sheya = 33,333 @ $.045.
Also, Brian Corday was said to own 752,778 shares and 452,778 options @ $0.10, but he is not shown in the Proxy even though he was named Exec VP.
Including Corday, total insider shares = 5,577,444. At $0.10 per share that adds up to $557,744.40, not counting any value for the options.
As far as I can tell, all insider shares and options were acquired at $0 cost. So, anything they get would be a “profit”.
But…
Their problem is that if they were to start selling, the shares would tumble further and even $550,000 is a lot less than they get by continuing to milk PLSB for as long as possible. Remember that over the past 5 years they got about $7.5 million in salaries, travel, meals and fees. Each year they keep PLSB going could bring them another $million.
You may have forgotten that Yates milked the employee’s profit sharing fund of his previous beverage company.
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