- Goldman Sachs comments on Monster Worldwide (NASDAQ:MNST) saying that according to SEC filings posted Monday, May 21, 2007, former Monster CEO Andy McKelvey sold 1,000,000 common shares (at an average price of approximately $48.92) last Thursday and Friday (May 17 and 18). Assuming no additional sales have been made, this reduces Mr. McKelvey's holdings to an estimated 8.2% of the company's outstanding shares (down from 8.9%), but 30.9% of voting power given the 10-to-1 voting power of the B shares (down from 31.5%).
While Mr. McKelvey is no longer an employee or director of Monster, and therefore is presumably not privy to internal company discussions, his decision to reduce his ownership stake would seem to suggest that he believes a sale of the company at a premium valuation is not imminent. Although his ownership stake is not sufficient to block a transaction, with over 30% of the voting power, his backing would be helpful if a change of control were in the works.
Notablecalls: MNST stock has soared since April 12 when CEO Bill Pastore was unexpectedly replaced by Sal Ianuzzi. Ianuzzi sold Symbol Tech to Motorola not long ago and people have been assuming he was brought to MNST to sell the co. The departure of former CEO and founder Mr. McKelvey in Oct 2006 pretty much marked the low point for the stock.
I'm not a big fan of MNST here considering the slowing job market and high valuation. On the other hand, I'm not entirely sure McKelvey's stock sales will be enough to stop this train just yet. But it surely represents the first step.
While Mr. McKelvey is no longer an employee or director of Monster, and therefore is presumably not privy to internal company discussions, his decision to reduce his ownership stake would seem to suggest that he believes a sale of the company at a premium valuation is not imminent. Although his ownership stake is not sufficient to block a transaction, with over 30% of the voting power, his backing would be helpful if a change of control were in the works.
Notablecalls: MNST stock has soared since April 12 when CEO Bill Pastore was unexpectedly replaced by Sal Ianuzzi. Ianuzzi sold Symbol Tech to Motorola not long ago and people have been assuming he was brought to MNST to sell the co. The departure of former CEO and founder Mr. McKelvey in Oct 2006 pretty much marked the low point for the stock.
I'm not a big fan of MNST here considering the slowing job market and high valuation. On the other hand, I'm not entirely sure McKelvey's stock sales will be enough to stop this train just yet. But it surely represents the first step.
1 comment:
I'm giving this one an under perform in my stock game.
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