tag:blogger.com,1999:blog-7294165939647321702.post8990709214482642707..comments2024-03-11T10:31:06.107-04:00Comments on <center><a href="http://www.barelkarsan.com">Barel Karsan - Value Investing</a></center>: Market Inefficiencies ExplainedSaj Karsanhttp://www.blogger.com/profile/04493152766022812984noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-7294165939647321702.post-7158077044819063832010-08-14T07:34:56.190-04:002010-08-14T07:34:56.190-04:00Thanks for this Barel! Always great to learn somet...Thanks for this Barel! Always great to learn somethingUnknownhttps://www.blogger.com/profile/13369503433136663584noreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-9707726280381583612010-08-13T14:56:03.409-04:002010-08-13T14:56:03.409-04:00Hi Jeff,
I don't think it actually is "b...Hi Jeff,<br /><br />I don't think it actually is "burning cash". I've written more about that <a href="http://www.barelkarsan.com/2010/08/cash-burn-vs-churn.html" rel="nofollow">here</a>.Saj Karsanhttps://www.blogger.com/profile/04493152766022812984noreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-38208173413603463002010-08-12T10:40:38.332-04:002010-08-12T10:40:38.332-04:00Barel -
I like the industry that the company is ...Barel - <br /><br />I like the industry that the company is in (it'll be around for decades anyway), the strong reputation of the company in New York, and the fact that forced selling has been driving down the stock price. On the other hand, the fact that the company has been burning some cash in operations for the last two quarters makes me wary about jumping in. How do you feel comfortable owning a stock that is currently burning cash?Unknownhttps://www.blogger.com/profile/13369503433136663584noreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-2370099991553396462010-08-11T16:38:41.928-04:002010-08-11T16:38:41.928-04:00I agree with Paul. It seems he more concerned abou...I agree with Paul. It seems he more concerned about his payday, rather than his company. Considering how 100,000 shares is worth about almost 1 weeks worth of trade volume for this company, I feel he has littler regard for the shareholders. Also I feel like the CEO's pay and compensation is too high. He earns around 1 million a year, yet his companies net profit last year was a little bit above 1 million.akhttps://www.blogger.com/profile/13092464020591017021noreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-84273051661402724982010-08-10T08:31:46.923-04:002010-08-10T08:31:46.923-04:00Not that it matters too much, but I would feel a b...Not that it matters too much, but I would feel a bit more confident if he held on to the shares. I know employees can do a "buy and hold" for stock options. With this method, the employee could buy the option at the exercise price and hold on to the shares without selling them. A variant of this is called "sell to cover" in which the individual will sell just enough shares to pay for as many shares as possible. For instance, if you have an option for 100 shares, you could sell 60 to pay for the taxes and an the 40 shares of stock. Essentially, it's a way for people without the available liquidity to still maintain ownership without coming up with funds out of pocket. I wished he would have utlized one of these methods to shore up confidence. Although, it's great to see he still owns about 10% of the shares outstanding.Paulnoreply@blogger.com