June 6, 2006
Wall of Shame
(c) copyright View from Silicon Valley, 2006. All rights reserved.
This will soon be a new "Wall of Shame" page on
the web site:
Here are, "17 companies that on at least three occasions had awarded options at, or close to, 40-day lows in stock
prices. CFRA said that while the 17 have the 'highest risk of having backdated options,' it has not confirmed any backdating."
(Again, we add "yet."):
American Tower (AMT),
Broadcom (BRCM),
Brocade Communications (BRCD),
CNET Networks (CNET),
Delta Petroleum
(DPTR),
F5 Networks (FFIV),
Juniper Networks (JNPR),
McAfee (MFE),
Medarex (MEDX),
Mercury Interactive (MERQ.PK),
Microstrategy
(MSTR),
Openwave Systems (OPWV),
Rambus (RMBS),
RSA Security (RSAS),
Semtech (SMTC),
Sepracor (SEPR), and
Zoran
(ZRAN).
There are another six where the stock price "surged by an average of at least 14% in the 20 days following
options grants in 1997 through 2002."
Broadcom (BRCM),
KLA-Tencor (KLAC),
Linear Technology (LLTC),
Marvell Technology
(MRVL),
Maxim Integrated Products (MXIM) and
Novellus Systems (NVLS).
Finally here is a list of others accused
and the known actions:
Affiliated Computer Svcs- subpoenas and shareholder lawsuits
Altera -
admitting there may be a problem
Analog Devices - subpoena from the
SEC
Brooks Automation - already re-stating financials since 1999
Caremark Rx,
Inc. - letter of inquiry from SEC
Comverse Technology - subpoena
from the SEC
Jabil Circuit - claiming innocence but SEC
investigation continues
Power Integrations - Chairman and CFO resigned
Quest Software
- letter of inquiry from SEC
Sycamore Networks - subpoenas
United Health Group
- subpoenas and shareholder lawsuits
Vitesse Semiconductor - CEO, CFO and an EVP fired
Of course, all companies are innocent until proven guilty.
Or until they re-state financials and/or fire the guilty parties..
Conclusion:
Who would ever but stock in any of these companies?
Their own officers weren't willing to risk their options, let alone their own actual cash to buy it.
Call me after a bunch of these liars and thieves have
dis-gorged all their fraudulent gains, plus fines and there is a new "executive" wing in the jail. Then maybe it
might be reasonable to actually risk my own money by buying shares in these companies.
* * * * *
The above is not intended as advice to buy, sell or hold
any stock, bond nor any other financial product. Invest at your own risk.
