No Lawsuit. Just redirect management.
My understanding of shareholder suits is that they only benefit the lawyers and their shills. Keep in mind that effectively we would be suing ourselves.
I think that the management has been generally pretty good, but their interests diverge from the interests of shareholders at times, particularly with respect to issuing stock.
Don't get me wrong. Issuing stock is appropriate at times. I am not sure why GTCB felt compelled to buy their stock back from Genzyme at over $3 per share and then sell it at increasingly lower prices, but it might be considered prudent for management not to 'play the market' by assuming that the price will go up and waiting to sell stock for that to happen.
I am not overly critical of decisions made in the past.
All that said; I do want to limit managements ability to freely issue new shares in the future. I believe if they are not authorized to issue additional shares that fact will immediately be taken into effect in the pricing of the stock.
At this point, I can't imagine it having a real adverse impact on their financial situation.
Then, I would not mind authorizing relatively small increases in the amount of shares.
So no, I don't think ambulance chasers are appropriate; but I do think that management should start supporting the interests of the shareholders.
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