Mentor Graphics Corp (NASDAQ:MENT)

CAPS Rating: 2 out of 5

The Company is a supplier of electronic design automation systems, advanced computer software, emulation systems and intellectual property designs and databases used to automate the design, analysis and testing of electronic hardware and embedded systems

Recs

3
Player Avatar TMFMattyA (99.75) Submitted: 10/9/2012 10:02:13 AM : Underperform Start Price: $15.73 MENT Score: +1.01

Though the company is making strides in the aerospace and automotive industries, it's still heavily tied to the ups and downs of the semiconductor market. At best I think this company is a market performer, but the reason for my thumbs down here is management. Both the CEO and CFO have presided over a company that has gone nowhere in terms of market value for nearly 20 years. They own around 1% of the outstanding stock, but have instituted a poison pill provision that pays them nearly $25 million in the event of a change in control, or if an outside party acquires 40% of the stock or is successful in electing indepedent, non-incumbent members to the board. Shameful. Strong underperform.

Member Avatar Fojoin01 (90.14) Submitted: 10/17/2012 8:16:24 AM
Recs: 0

Your information is appreciated - but just note that $25 million in the grand scheme is not a poison pill - but barely a bleep with a company this size.

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