It's a proxy war: activist investor Balch Hill wants to bounce troubled SSD supplier STEC's board - which includes its CEO and its founder - and populate the boardroom with seven of its own nominees. STEC is the former leading enterprise SSD supplier which has fallen on hard times and is now partway through a strategic direction …
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"Balch believes that STEC has been mismanaged, is spending too much money on research and development and should return cash to the shareholders."
How many stories like this have there been in the news over the last few weeks? Seems like someone is going round saying oh, there's a cash rich company. Buys a few shares then try and wrestle control of the company away and open the swag sack. At this rate, they'll have lots of cash but no companies to invest in cause they'll killed them all off.
Whilst I understand the need for shareholders to raise capital for future investments, more and more I am beginning think they will be the death of us all, either as James 51 points out as soon as they see cash in the company they believe it is there right to have access to it, or they expect year on year growth no matter what the market is doing or what the company has predicted, was it Apple who beat their own forecasts yet the share price still fell.
I particularly hate the utility company investors who demand year on year growth and even though we insulate our houses, and use solar panels and do everything we can to lower our bills, prices will still rise to keep these bastards happy and keep the cash flowing.
phew, okay, I'll step off my soap box after that.