Tuesday, May 13, 2008
This is a bad company in a miserable industry. There is no turnaround plan. It's been run like a feudal enterprise by the founder and her son(they remind me of the Dillons, the mother and son conmen in The Grifters). It's not even worth a takeover bid.
Radio One(ROIA) is now trading for about $1. I went negative on the stock in August at $4. This company is the worst house in a bad neighborhood . It has been steadily mismanaged, yet all along the way, management has been very generous in granting themselves raises and bonuses despite poor execution.
They only add insult to injury when the CFO says, " Liggins's increased compensation reflects the fact that he has diversified the company's media portfolio... the package would provide incentive for Liggins to "maximize shareholder value."
Shouldn't the CEO of a company that his mother founded and of which he owns with her 7/8ths of the outstanding stock have more than enough reason to maximize shareholder value? When you're issuing a press release in order to explain away stock sales that make you look like rats fleeing a sinking ship, you've got problems.