[Update4] On Sustainable Growth and Insider vs. Non-Insider Shareholder Value Maximization
[Update4] Does Geeknet (GKNT) Have Sufficient Cash to Sustain* ThinkGeek's Growth and Continuing Losses? President, CEO of Media and President, CEO ThinkGeek Awarded $4M in Bonuses** Amidst Continuing Patterns of Continuing Losses and Not Tied to Performance. On Insider versus Non-insider Shareholder Value Maximization and Full Disclosure. Story developing...
Geeknet (GKNT) President, CEO of Media and President, CEO ThinkGeek awarded $4M** in bonuses*** not tied to performance amidst consistent patterns of continuing losses, worsening eCommerce gross margins. What is Kenneth Langone thinking?
Questions GKNT non-insider shareholders should be asking:
1a. What happened to Geeknet's cash position? It decreased $21,368,000 from December 31, 2009 to September 30, 2010 (nine months).
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, unaudited)
September 30, 2010 December 31, 2009
Cash and cash equivalents $17,975 $28,943
Short-term investments 8 9,408
Inventories 16,222 5,280
Restricted cash 1,000
Source: Geeknet SEC 10-Q for the period ended September 30, 2010.
1b. What effect will the TK-421 negative reviews (see below reference) have on ThinkGeek's Q4 ending December 31 2010 margins (per the above) and cash position**? Will they be material (see Inventories number above for Q3 ending September 30, 2010) ? All things equal, at this run-rate it does not appear Geeknet's cash position will be sufficient to sustain* ThinkGeek's growth and continuing losses.
2. Why hasn't Geeknet's website geek.net been updated since August 2010?
3. Does Geeknet have any analysts following them? Why is that? Why is Geeknet exhibiting continuing patterns of silence re: 1, 2, 3 and the fact Geeknet does not participate in any Investor or Analyst Meetings/Conferences? Financial suicide and gross negligence for a small-cap growth company (.) in Re: Insider and Non-insider long-term shareholder value maximization.
4. Who is Geeknet's Mark Zuckerberg? Visionary? Shareholder value will never be created/maintained without this single most important ingredient. Is Langone's only option accordingly, again, all things equal, is to set Geeknet up for an immediate acquisition or secondary offering(s)/IPO(s)?
* Higgins, et al Sustainable Growth Models
** 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.
*** Matt Carey, CIO (NYSE:HD), GKNT Director and Member of GKNT Compensation Committee awarding said bonuses. Kenneth Langone, Chairman, GKNT.
Note: Collison's and Offutt's titles on said SEC FORM 4's are both designated as "President, CEO" of their respective divisions. Pending separate spinoffs/IPO's? (Also see February 06, 2005 article below, The Times, London - does this mindset explain said incomprehensible and alleged negligently conceived bonuses?).
(December 26, 2010) Goodbye, GKNT
(December 17, 2010) Multi-million-dollar bonuses, Yahoo! Finance Message Board, Geeknet, Inc.
(December 16, 2010) Geeknet (GKNT) Names GE Healthcare CFO, Kathryn McCarthy, as GKNT CFO Effective January 4th, 2011
(December 15, 2010) [Update1] ThinkGeek (NASDAQ:GKNT) Initiates a 20% Discount on TK-421 on the Heels of engadget, Chip Chick, c|net...Unanimous Thumbs Down Review for Their Highly Anticipated iPhone Keyboard...Wikileaks and SourceForge?
(December 03, 2010) [Update5] Geeknet Disrupt - Can Langone's team turn Feedery into the Next Generation Social Media News Site/Engine? 33 Months Ago 13D Hedge Fund Shareholder Put Pressure On Geeknet (GKNT) Board Demanding to Unlock Value. Where is Geeknet today?
(November 22, 2010) [Update2] There's no "Team" in "I". ThinkGeek (GKNTD) President Files 8-K Minutes Before Market Close [on a Friday] - Sticking it to Non-insider Shareholders and a No Confidence Vote in President, Media Division.
(November 18, 2010) [UPDATE1] Geeknet (GKNTD) Names Scott [Ohloh] Collison as President and GM, Media and Announces Move from Silicon Valley to ThinkGeek's HQ, Virginia, CFO to Resign.
(November 01, 2010) [Update1] Geeknet Divests ohloh. The Minds Behind Ohloh.net Failed to Turn Geeknet GKNTs World Class Open Source Assets Into Something Extraordinary. What's Next for SourceForge.net and Slashdot.org?
(October 16, 2010) [Update2] Geeknet (GKNT) Announces Sale of Ohloh.net to Black Duck Software. What's Next for SourceForge.net and Slashdot.org?
(October 03, 2010) What is Going Down @Geeknet (GKNT)? Imminent SourceForge.netDivestiture? Github Acquisition? Who is Geeknet's Mark Zuckerberg?
(August 19, 2010) [Update2] What is Langone's Endgame? Kenneth Langone Delivers on Promise* of Geeknet (GKNT) SourceForge Layoffs...R&D Spending Down 36.8%
(February 06, 2005) Kenneth Langone on Bonuses: The Times, London. Grasso denies any excess in $100m pay row. (Unedited version, SourceWatch).