Use access key #2 to skip to page content.

gnulaw (54.44)

"Gee Whiz Beav, I'm feeling really swell about 2011". "That's great Wally, here's a $2 million bonus!". GKNT Shares Tumble as Non-insider Shareholders Have Many Questions.

Recs

4

January 16, 2011 – Comments (10) | RELATED TICKERS: GKNT , BBY , AMZN

[Update2] Geeknet GKNT Shares Tumble as GKNT Fails to DIsclose Geek.com divestiture to Ziff-Davis and iCade Launch (5) as GKNTs Board of Directors and Officers are Awarded Massive Bonuses (1,2,3) and During Alleged Trading Blackout PeriodSelective Disclosure?

Issues of Fact(s).  

Geeknet announced its acquisition of Geek.com eight months ago as they did with their disclosure of Feedery (5) but Geeknet's Senior Officers and its Board of Directors chose not to disclose their divestiture of Geek.com.  Note: Geeknet's CRO, Matt Sweeney, allegedly led the divestiture of Geek.com to Ziff Davis. "...Most recently, Matt was President, Sales and Marketing for Ziff-Davis Enterprise..." - Geeknet

Why are Geeknet's Senior Officers and its Board of Directors accordingly not making said disclosure(s)? 

Geeknet GKNT shares have tumbled considerably since management has still not fully disclosed / gone public with its Geek.com divestiture to Ziff-Davis reported here January 02, 2011. On January 03, 2011 the GKNT Board of Directors were awarded $499,775.44(1) in Bonuses not based on performance / GKNT earnings. And contemporaneous with its insider options issuances on January 7th Geeknet also did not disclose its alliance with Atari and IONaudio with its iCade iPad Gaming Arcade for release April 2011.

On December 14, 2010, 17 days before Q4 ending 2010, Geeknet (GKNT) President, CEO of Media and President, CEO ThinkGeek were awarded $4M (2) in bonuses (3) not tied to performance amidst consistent patterns of continuing losses, and worsening eCommerce gross margins.  What is Kenneth Langone thinking?

Massive bonuses not based on performance + non-disclosure of Geek.com divestiture + non-disclosure of iCade strongly suggests Q4 was a disaster (TK-421?) and Geeknet is holding news to obfuscate their q4 numbers..imoo. SourceForge nka Geeknet has been street and non-insider shareholder hostile since Scott Kauffman became CEO. This did not make sense and drew fire starting with the Trivium Capital Hedge Fund and Whitman Capital (7). But it continues under Kenneth Langone arguably suggesting Langone and his partners have been enforcing/dictating this Street and non-insider hostile strategy all along. 

Again, why are Geeknet's Senior Officers and its Board of Directors accordingly not making said disclosure(s) / implementing said baseline initiatives?

Alleged consistent patterns of Selective disclosure , and or alleged violation(s) of Insider Trading Sanctions Act, Sarbanes-Oxley, SEC Rule 10b-5 (Reliance, Causation...) during GKNT's trading blackout period (In Re: Q4/FY 2010 numbers (6))?

11 Jan via web @scollison Scott Collison

"Great Geeknet Media sales meeting in New York. Lots of smart, motivated people. I'm feeling very good about the future of the company! (tweet © 2011 Twitter)

Comment:  Scott became excited about the future after his $2M bonus? ...and what about ohloh.net (2, 4, 5, i, ii. iv),  geek.comslashdot.org*, feedery (5)...Q4 2010? oooops....#FAIL #FTW 

and lastly...ripped from the off-Broadway play, SourceForge discovers its inner-Geek. [Scott Collison played by Wally and Kenneth Langone and Matt Carey played by The Beaver].

"Gee Whiz Beav, I'm feeling really swell about 2011."

"That's great Wally, here's a $2 million bonus!" EBITDA EBITDA EBITDA.....THAT'S ALL FOLKS!

__________________________

(1) Geeknet Board of Directors Awarded $499,775.44 in bonuses not based on performance / GKNT earnings.

Bonus Awards Transaction Date per SEC FORM 4, 1/3/2011, Closing price 24.39

Kenneth G. Langone, 2459 shares, Award $59,975.00

Andrew Anker, 2049 shares, Award $49,975.11

Matt Carey, 2459 shares, Award $59,975.00

Peter A. Georgescu, 2049 shares, Award $49,975.11

Robert M. Neumeister, 2459 shares, Award $59,975.00

Frank A. Riddick III, 2459 shares, Award $59,975.00

Derek V. Smith, 2049 shares, Award $49,975.11

Michael Solomon, 2049 shares, Award $49,975.11

David B. Wright, 2459 shares, Award $59,975.00

(2) Based on the closing price of Geeknet (GKNT) on December 14, 2010 ($25.89). Form 4 Scott Collison filed December 16, 2010 (78,125 shares). Form 4 Caroline Offutt filed December 16, 2010 (78,125 shares).  These awards were made while Geeknet is sustaining continuing losses and cash drains while Thinkgeek's gross margins have further eroded from 15.74% for the nine-months ended September 30, 2009 to 12.03% for the nine-months ended September 30, 2010. Source: Geeknet SEC 10-Q for the period ended September 30, 2010. 

(3)  Matt Carey, CIO (NYSE:HD), GKNT Director and Member of GKNT Compensation Committee awarding said bonuses. Kenneth Langone, Chairman, GKNT.

(4) "...We have long held SourceForge in high regard," said Scott Collison, CEO of Ohloh. "We are eager to combine our skills and insights with SourceForge's credibility and reach in the open source ecosystem and look forward to joining the SourceForge team...". Never happened, ohloh was dumped as an asset sale under Scott Collison's leadership as an officer of Geeknet after and after cashing out with the SourceForge May 2009 acquisition. (See SourceForge wants to be collaboration powerhouse, buys Ohloh)

(5) Note: Geeknet disclosed feedery pursuant to a formal press release (full disclosure) on November 16th 2010 but not its divestiture of Geek.com nor its iCade alliance with IONaudio and Atari.  Selective disclosure

(6) Geeknet (GKNT) FY 2010 and q4 numbers ending December 31, 2010 are projected to be reported Monday February 07, 2011 18:00 (ET) as reported by Daily Finance.

(7) "...The valuation of Geeknet (LNUX) is very low, and you've got a major eCommerce business that's doing obviously very well, an eCommerce business is probably worth more than the whole market capitalization not even counting the rest of the Company and go back to Wall Street and reestablish a presence on Wall Street?..." - Source:  (February 11, 2010) Douglas  Whitman, Whitman Capital, [13:56] into the Questions and Answers portion of the February 11th Conference Call. Note: This was February 2010, five months before Kenneth Langone appeared.

Updates:  Jeffrey Chalmer*s, Controller, disappears from Geek.net home page around January 12th. He formerly appeared here (through the back-door, may not be here long)...geeknet_Inc hasn't tweeted since November 8th (including its Facebook presence), so much for SourceForge's nka Geeknet grand "Geek" marketing strategy of capturing geek market share...only to dump Geek.com, (after dumping Linux.com and ohloh.net) arguably their strongest media asset, and namesake. Note: Geeknet even made a video to prove they were Geek's [None of the Corporate Overlords in the video are now with Geeknet].

References:

i.  (November 03, 2010)  [Update1] Langone, Geeknet (GKNT) Q3 numbers Disappoint, Management overviews on Conference call Embarrassing...Reverse Split Effective November 10th...Langone's UFI effected 1:3 reverse split today...Story Developing...

ii. (October 16, 2010)  [Update2] Geeknet (GKNT) Announces Sale of Ohloh.net to Black Duck Software. What's Next for SourceForge.net and Slashdot.org?

iii. (August 27, 2010) Breaking...Exclusive...News...GKNT Shareholders Allege Blatant Violations of Insider Trading Sanctions Act of 1984 by CFO, Former CMO, Former CTO...Story Developing...Note: All Officers cited in this article are no longer with GKNT.

iv. (February 20, 2010) What/When are the Minds Behind ohloh.net Doing to Turn Geeknet (LNUX)s World Class Open Source Assets Into Something Extraordinary...into a Viral Loop?

10 Comments – Post Your Own

#1) On January 18, 2011 at 7:39 AM, gnulaw (54.44) wrote:

>>(6) Geeknet (GKNT) FY 2010 and q4 numbers ending December 31, 2010 are projected to be reported Monday February 07, 2011 18:00 (ET) as reported by Daily Finance

 

Ameritrade is showing GKNT is releasing Q4, FY 2010 numbers February 10th before market Central Standard time. ??

Report this comment
#2) On January 18, 2011 at 10:31 AM, gnulaw (54.44) wrote:



tk-421 still in stock...latest review by
@sgartland4304 Sean Gartland

My review of the @Thinkgeek TK-421 iPhone Bluetooth Keyboard Case is up. Go and check it out! PLEASE RT:youtube.com/watch?v=Dac9G0…

above tweet © 2011 Twitter

Report this comment
#3) On January 18, 2011 at 3:39 PM, gnulaw (54.44) wrote:


Nasdaq stocks posting largest percentage decreases on Tuesday January 18, 2011, 1:18 pm EST

Report this comment
#4) On January 26, 2011 at 5:41 PM, gnulaw (54.44) wrote:

Geeknet Sets Fourth Quarter and Full Year 2010 Financial Results Release Date

 

"...Geeknet will report its financial results for the fourth quarter and full year ended December 31, 2010 on Tuesday, February 15, 2011. A conference call will be held that day at 11:00am PT / 2:00pm ET..."

Live Dial In Information:
Live Dial In (Toll Free): (877) 348-9353
Live Dial In (International): (253) 237-1159

A live audio webcast link will be available in the Investor Relations section of the company's corporate website at geek.net/investors. A dial in replay will be available until midnight on March 1, 2011.

Dial In Replay Information:
Replay Number (Toll Free): (800) 642-1687
Replay Number (International): (706) 645-9291
Conference ID #:39976306

Source: Geeknet 4:30 PM EST 01/26/2011

Report this comment
#5) On January 28, 2011 at 1:34 PM, gnulaw (54.44) wrote:

 

Note: It appears Langone picked February 15th to report fy 2010 numbers given ThinkGeek's Valentine's day (February 14th) promotion (slashgear twitter coverage below)

"...@slashgear SlashGear

Blog Post: ThinkGeek offers geeky Valentines gifts for your sweetie http://bit.ly/hOfdk2,.."  *

and 

JOYSTICK - IT is supposed to ship by January 31st and iCade continues to build momentum (See ThinkGeek's 1/26 tweet below)

"...Lookit our lil' iCade, all growed up & in @NYTimes!http://j.mp/hjzrFj (Related: Style guide nerds, can "Web site" be "website" yet?)10:34 AM Jan 26th via TweetDeck ..." *

 ...all of which will provide fuel for their apparent singular focus on ThinkGeek's future (and arguably allowing them not to focus too much / distancing them from tk-421 numbers??).

 

..the entire media division being the wildcard. No one seems to know how to monetize Geeknet's 57.9M** unique monthly visitors substantially accounted for by the media division. The question is how will Geeknet fund ThinkGeek's sustainable growth? Staged secondaries over the next 18 months beginning with a $20-$40M secondary around late q1 ending March 31, 2011 fueled by GKNT's February 15 conference call?

 

Updates: HP and Starbucks are now advertising on slashdot.org and sourceforge.net...Sourcefoge.net may have hit a new download record on 1/26/2011 --> 01/26/2011 6:25 pm est So far today: 4,232,077 downloads 6,777 code commits 3,614 forum posts 983 bugs tracked 

 

* Above tweets © 2011 Twitter  

** November 2010 Unique Visitors 57.9M. Source: Google Analytics and Omniture

 

 

Report this comment
#6) On February 01, 2011 at 5:18 AM, gnulaw (54.44) wrote:

>>No one seems to know how to monetize Geeknet's 57.9M** unique monthly visitors substantially accounted for by the media division.

 

Interesting very recent development?....I no longer see ThinkGeek being advertised on slashdot nor sourceforge. The two obvious places which are capable of maximizing ThinkGeek's revenues/earnings/growth given the commensurate growth/unique visitors of sourceforge.net and slashdot.org...

Report this comment
#7) On February 02, 2011 at 6:51 PM, gnulaw (54.44) wrote:

SourceForge.net 6:45PM February 02, 2011 So far today: 4,168,763 downloads 6,990 code commits 4,356 forum posts 1,244 bugs tracked More site activity

Report this comment
#8) On February 06, 2011 at 9:39 AM, gnulaw (54.44) wrote:

geek.net to host? Enterprise Security 2011: A Virtual Conference February 23rd.

Sponsors: ArcSight, thawte, Applications Security, Inc.


Reference: slashdot.org top banner ad February 6, 2011.

Report this comment
#9) On February 16, 2011 at 5:22 AM, gnulaw (54.44) wrote:

>>Update2] Geeknet GKNT Shares Tumble as GKNT Fails to DIsclose Geek.com divestiture to Ziff-Davis 

Cash proceeds from sale of geek.com $640,000. Source Geek.net February 15, 2011...Update developing...

Report this comment
#10) On March 19, 2011 at 11:22 AM, gnulaw (54.44) wrote:

Geek.net home page now seven plus months out of date from its headline news to advertising stats and demographics(1.) to remainiing Street hostile/challenged (2.). What is Langone's Endgame

Footnotes /  References:

1. Slashdot (March 19, 2011)


2. 
(Footnote 7 above) "...The valuation of Geeknet (LNUX) is very low, and you've got a major eCommerce business that's doing obviously very well, an eCommerce business is probably worth more than the whole market capitalization not even counting the rest of the Company and go back to Wall Street and reestablish a presence on Wall Street?..." - Source:  (February 11, 2010) Douglas  Whitman, Whitman Capital, [13:56] into the Questions and Answers portion of the February 11th 2010 Conference Call

Report this comment

Featured Broker Partners


Advertisement