As The Stock Touches $2.10 Today… And Winston & Strawn Repeatedly Visits…

…I wanted to make Bob’s latest comments (in the bottom of the prior post) an entirely new post. [And yes, $2.10 is a new all time record NASDAQ low intraday price — on significant volume, too.]

What Bob is lining out, here — day by day — is that this board of directors egregiously overpays (in highly dilutive equity, to boot — vis a vis all the public shareholders) for increasingly awful performance.

Month after month… Quarter after quarter; year after year. Decade (now almost) upon decade…. And the pilfering is accelerating, over the last 20 quarters.

The details are below; the summary is at right — but any sentient board would have ended this, long ago.

Now it seems the shareholders will have to do so. [Click to enlarge:]

Bob writes:

“…Not only did MATR’s rate of loss mushroom relative to ELOY from -18.27% to -44.48%, a 2.4x increase, but when you look at non-cash compensation (stock/option awards) awarded for performance as a percent of revenue, it also mushroomed from 5.2% of revenues to 14.1%, a 2.7x increase.

The compensation committee of the board of directors, that is supposed to operate in the best interests of the shareholders, concluded that for dramatically worse performance, the management and employees of the company deserved a massive increase in stock awards, relative to revenues?

WTF is going on here?…”

What, indeed?! Time to lawyer up, Mr. Conway.

One thought on “As The Stock Touches $2.10 Today… And Winston & Strawn Repeatedly Visits…”

  1. Good analysis of the financials and enjoy following this blog. I’m also wondering… how are they going to generate growth? Dresden and Wesbecher have been gone for all of 2017 with no replacements, at least according to the website leadership page. So no sales or marketing leadership for a largely evangelical sale? It’s obvious that they don’t understand how to sell their own product or manage a sales cycle based on the last earnings call and don’t have any experienced outside software sales or marketing leadership helping them. Additionally, it looks like they only have 6 or 7 quota carrying sales people. To get out of the $12M hole they’re in so far this year, they must be expecting each sales person to bring in $2M in new, recognizable revenue in the next 5 months. Fat chance of that happening. I should not have talked myself out of shorting this stock a year ago, drat.

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