Brikk,
Maybe by 2012 at the earliest but in most likelyhood it would be phased in starting in 5 years at 10-20% per year. It should all make perfect sense going forward IMO.
A 76 year old man does not spend 3 1/2 years building a company only to destroy it. No my friend he is looking for legacy here and he will make sure it happens.
If the prefferds are being used for executive compensation going forward (which I believe they are) then I can guarrantee you they will not vest for a minimum of 5 years and then they do not vest all at once so this is really a non-issue.
If the company is growing at 30% per year which is my guess and the shares are released at 10% per year after 5 years then this is still a net gain that dwarfs most companies.
I actually see it as a huge possitive. If he knows the key execs get their shares 10% per year after the first five years then he has supported loyalty for the next 15 years for the execs to be fully vested.
My guess is there is some warrants in the three dollar range for the key execs as well. This would mean the quicker the key execs get the pps to three dollars the quicker they can enjoy the benefits. Remember Deans background is sales and he understands the power of diredct performamnce compensation. He will motivate his people to get the best performance from them right up front.
I managed and trained sales teams in the leasing business back in the 80's. I also understand the power of a well thoughtout compensation plan it can be amazing what people will do to hit the marks within a company. You have to align personal greed with the company interests and sit back and watch the magic happen. It is truly amazing to watch. I think I would add greed as the third greatest power in the universe right behind leverage and compounding as stated by Einstien.
So now we have in this stock leverage, compounding and greed. sounds like a real good combination to me.
This is why I say this is not just a short play but a play that will really see it's potential for years to come.
Sorry for the war and peace novel but I am an insomniac and I had nothing better to do. haha!
Good morning all,
Remember you are dealing with a man who has bee around the block many times and is a bit of a genius.
T.