I've already reposted this once, but just for you, here is the pertinent excerpt from 12/23/09:

I suspect the intended question is more at "what has the BoD done with the income from the MMP to enhance shareholder value?". In spite of my misgivings with the BoD, there actually have been a bunch of things they've done with the money - and it's where IMO most of the money went - to enhance shareholder value. Unfortunately, there is great debate over most of these things, but on their face, they did enhance shareholder value. Examples:

- Share buy-backs, reducing float (how much spent? $10-20M?)

- Dividends, where all shareholders benefited depending upon the number of shares they held. Interestingly, most complain about the dividends, yet currently, many suggest it be the way of the future. (how much spent? $30-35M?)

- Eliminated outstanding warrants. Some complain about how the warrants came to be, but, none-the-less they were eliminated - a good move. (how much spent? $25-40M?)

- Acquisitions. Some believe they are very questionable, others had demanded they take such action. Results TBD, far too early to tell. (how much spent? $10-20M?)

Please correct any of those dollar estimates or refine them as possible. But there you have, per these estimates, $75M to $115M. That of what? $125M?

Granted, the numbers aren't exact, and there was probably a lot of money wasted. My problem with the BoD has mostly to do with their compensation and their inability to select capable management (and the compensation of that management with little to nothing in the form of results). But to suggest they "squandered all the proceeds from the MMP" is pure non-sense. Some, yes, most of the money, no.

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Now, on top of those numbers, throw in their greatest expense - TAXES. Assuming 9% CA corporate tax and 36% Fed; 45% of the $125M went for taxes. Another rough number, granted. Perhaps you can do the research to refine all of these numbers (please do). In any case, the vast bulk of the money bought something of value to shareholders. In hindsight, some may not have been well spent/invested. The ARS investment, 12% return, supposedly secure - were there a lot of complaints AT THE TIME they did that? The acquisitions that some investors (unlike me) were DEMANDING - were there a lot of complaints AT THE TIME they did that? And the actual results of both are still TBD.

The point I was making is that the BoD did not "squander ALL of the proceeds from the MMP". IMO, the squandering was in the form of compensation packages - a legitiment complaint IMO. Less than 1% of the proceeds. All the rest is debateable, perhaps, with 20-20 hindsight.

And I suppose questions could be asked as to were our PPS would be if the above expenditures weren't made. The outstanding warrants, for instance, or the Swartz common holdings.

FWIW,

SGE