Author Topic: Spoke to Sardar Today  (Read 40740 times)

Parsad

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Spoke to Sardar Today
« on: May 02, 2010, 12:04:38 AM »
I spoke to Sardar for about half an hour today at Andy Kilpatrick's party in Omaha.  We discussed the compensation agreement.  There will be a special AGM for the agreement where shareholders will be able to ask questions.  I think all investors should make up their own mind on their ownership as information becomes available.  I didn't hear anything that would change my opinion significantly, but he explained that there would be adjustments made before the incentive allocation is calculated for share issuances, buybacks, etc.

Our investing philsophy is we make investment decisions based on the financial statements alone.  If management's conduct is favorable, then that is the icing on the cake.  But if management's behavior is unfavorable, then that can have a material impact on how we feel about an investment.  In this case, there are some winds starting to blow in the wrong direction.  Cheers!
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Zorrofan

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Re: Spoke to Sardar Today
« Reply #1 on: May 02, 2010, 09:06:07 AM »
Sanj,

Can you share any of Sardar's thought process behind the new "compensation package"?  If he was worried about control there are other options (for example Prem's multi-voting shares, a poison pill etc) or is it all about the money?

cheers
Zorro


Parsad

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Re: Spoke to Sardar Today
« Reply #2 on: May 02, 2010, 10:31:06 AM »
I didn't really buy into his argument, and explained to him that I would have to reserve judgement until I see full disclosure in the financials on the incentive allocation and any adjustments.  I'm not sure they've really 100% thought through this whole process...especially the accounting side.  I would suggest that investors pay very close attention to the incentive allocation disclosure and ask as many questions as they want at the special AGM. 

I don't want to comment too much on exactly what he said, as the discussion was over half an hour and I don't want to print his comments out of context.  It's best if shareholders hear it directly from the horse's mouth, rather than the context I might communicate to you.  I think this is a very sensitive issue for shareholders and you should get the information clear and direct from him.  Cheers!   
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valuecfa

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Re: Spoke to Sardar Today
« Reply #3 on: May 02, 2010, 10:40:29 AM »
I didn't really buy into his argument, and explained to him that I would have to reserve judgement until I see full disclosure in the financials on the incentive allocation and any adjustments.  I'm not sure they've really 100% thought through this whole process...especially the accounting side.  I would suggest that investors pay very close attention to the incentive allocation disclosure and ask as many questions as they want at the special AGM.  

I don't want to comment too much on exactly what he said, as the discussion was over half an hour and I don't want to print his comments out of context.  It's best if shareholders hear it directly from the horse's mouth, rather than the context I might communicate to you.  I think this is a very sensitive issue for shareholders and you should get the information clear and direct from him.  Cheers!  


I can respect reserving judgment until all the accounting quirks are disclosed in this compensation scheme. I'm sure you don't want to attack a contact of yours on this message board either. I have the benefit of anonymity. However, you are smart enough to know that this is what it is, regardless of accounting adjustments. The adjusting of book value growth for accounting quirks though very relevant, is just a sideshow to the grand scheme. I 'm sure he will adjust for accounting quirks. He surely is not stupid enough to kick his partners on the ground in plain sight, while he is robbing their back pockets too. He is still taking shareholders to the woodshed, regardless of the accounting.

Could he even look you in the eye, when you asked him about what medication he might be taking at the moment what his thinking was.
« Last Edit: May 02, 2010, 10:55:40 AM by valuecfa »