GTAT’s “C-Suite” still has an “Astounding” amount of “Skin” in the game

Posted: May 29, 2014 by mattmargolis24 in GTAT Investor Information
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GTAT’s Recent Insider Selling

Each and every week I have been asked about insider selling and my answer has more or less been the same, “It doesn’t bother me”.  I do believe GTAT’s insider selling is partly a function of share price appreciation after two years without share price appreciation.  The other important item to consider is that a majority of the C-Suite compensation is tied up in stock grants that vest over time.  However, if you want to truly understand the overall amount of C-suite’ skin in the game it is important to not only look at the current vested shares but also the shares that have not vested.

If you looked closely at GTAT’s proxy information specifically page numbers 50 and 51, you would have noticed a nice schedule that details the number of non-vested shares for the executive team.

C-Suite “Non Vested” Shares

Thomas Gutierrez (CEO)- holds over 1.1 million shares that have not vested

Richard Gaynor (CFO) – holds over 379,700 shares that have not vested

Dan Squiller (COO) – holds over 746,000 shares that have not vested

Conclusion and Support 

The number of shares that have “not vested” for GTAT’s C-Suite truly staggering (see images below).  There have been several reports recently of insider sales of 100,000 or 200,000 share blocks at a time but those sales should not outweigh the fact that GT’s C-Suite has millions of dollars of “skin” still invested in the game.  The astounding amount of “non-vested” C-Suite shares should only give investors even more faith in management’s focus to increase shareholder value.  Management’s focus on the medium to long-term will not only increase the value of the C-Suite “non-vested” shares but also increase the net worth of GTAT longs, who plan on holding the stock over the next few years.

 

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Disclosure: I am long GTAT

 

Reminder: My PTT Research Forensics Newsletter that is scheduled to be published on Thursday June 5th at 3pm EST.

My Forensics Newsletter pricing is now available and a special 20% launch discount (for the first 48 hours) will be available when my Forensics Newsletter subscription goes on sale on Monday June 2nd at 12pm EST.

If you were wondering what my next pick will be. Here is my sneak peek summary:

My next pick is a company that is built on top of a strong foundation of intellectual property. My analysis of the company’s data and public comments indicate that a “major ramp” in future sales is just getting underway. The company’s C-suite is in the process of scaling up the business and preparing to manage a much larger and more complex company. The company has quietly created an integrated eco-system comprised of software and hardware that continues to extend its competitive edge over its largest competitors. The industry that the company primarily supports is in the early stages of what is expected to be an explosive and long-term growth cycle.

 

 

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Comments
  1. George Jones says:

    They are raising cash to diversify into the Obscure Forensic stocks. Makes them less fragile.

    Relative to the dot.com guys, TG is way underpaid but happy.

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  2. Nancy Allin says:

    Thanks for expanding on the insiders holdings Matt. Will your newsletter focus on technology stocks only? Or will you comment on the market in general also. I am a small investor, not a daytrader, but I do swing trade quite heavily. I like to take advantage of dips and runs when I can. I lost a considerable amount on AAPL and stick to the smaller growth stocks now using a combination of holding the stock and trading the swings with options. I am slowly building my capital again but am much more cautious than I used to be.

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    • Nancy it will allow me to do both (market and stocks). A lot will depend on feedback and what people want to know. I am a tech nerd but my picks will not limited to tech but instead they will be focused on stocks that have value and opportunity.

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  3. Andy says:

    Thanks Matt, that does shed light on an issue that has bothered me. I was none too happy with the signal TG sent by selling so many shares, but this puts it in perspective and I had been looking for these numbers. I am surprised that Richard Gaynor still has so many shares in the queue since he left the company months ago.

    I don’t necessarily agree with the sentiment that TG is underpaid at $5 million per year. When the company returns to profitability, and should it do so in grand scale, we can revisit that question, but $5 million per year to guide an unprofitable company is not bad at all.

    Like

  4. Mike says:

    Hey Matt,

    Just wanted to say thank you for your in depth time and research that you’ve put into GTAT. I’m looking forward to a nice long ride for the next couple of years (min)

    You also made a nice call on (MU) Micron a bit back (for those that did’nt know) 😉 that i was fortunate enough to get into at 23.00$ based on your wisom and knowledge when i first read your article at SA…which ultimately led me here.

    Also, congrats on your new job at TTM. it is well deserved.

    I wish you, your family, and friends health, wealth, and happiness through out your life.

    Thanks again and be well.

    Mike

    Like

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