Joan Lappin, CFA
March 25, 2011
Poor decisions by Mel Karmazin CEO based on very bad advice from CFO David Frear left the company with insufficient cash and cash flow to pay the interest on its debt.
With the stock at $0.50 after the Liberty bounce, huge option grants were given to Karmazin and Frear and others in top management.
Keep your eye on David Frear’s stock transactions and S4 filings. He seems to know exactly when the shares are about to peak out and sell a bunch as he did recently when he sold 375,000 shares at $1.78 on 2/18/11 for a total value of $667,538.