The value of that 75% of shares in AYSI is worth significantly more, or could potentially be worth significantly more than a 2% royalty on net sales. $500k a year is not the difference between financing the new plant with internal funds and requiring outside capital...
$500k a year is not worth 75% of the AYSI business... 75% of net income margins of 15%-20% is > than 2%... Simple math and rational thought would tell you that he cares MUCH MUCH more about his 75% of AYSI than his 2% royalty...
I won't argue over his greed or lack of transparency. I believe he regrets going public and is trying to find a way to keep what he feels he has earned. Hopefully investors don't get left out in long run. Gene is a brilliant engineer and poor businessman at best. With better corporate management all could prosper. Alloy Steel could even get the finiancing they need to grow.
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