Comments on: DivX Loses CFO – Red Flags or Signs of Evolution? http://davisfreeberg.com/2007/04/25/divx-loses-cfo-red-flags-or-signs-of-evolution/ Wed, 31 Aug 2011 01:39:44 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: mmay http://davisfreeberg.com/2007/04/25/divx-loses-cfo-red-flags-or-signs-of-evolution/comment-page-1/#comment-47526 mmay Thu, 26 Apr 2007 13:34:05 +0000 http://davisfreeberg.com/2007/04/25/divx-loses-cfo-red-flags-or-signs-of-evolution/#comment-47526 this seems abrupt and not well coordinated, which leads one to correctly assume their are issues here. if this is part of a transitioned plan, DIVX would have been better served announcing this along w/ their earnings release next week. this approach has been successfully used by many companies that are dealing w/ a CFO departure/transition. this seems abrupt and not well coordinated, which leads one to correctly assume their are issues here. if this is part of a transitioned plan, DIVX would have been better served announcing this along w/ their earnings release next week. this approach has been successfully used by many companies that are dealing w/ a CFO departure/transition.

]]> By: grant http://davisfreeberg.com/2007/04/25/divx-loses-cfo-red-flags-or-signs-of-evolution/comment-page-1/#comment-47525 grant Thu, 26 Apr 2007 13:21:48 +0000 http://davisfreeberg.com/2007/04/25/divx-loses-cfo-red-flags-or-signs-of-evolution/#comment-47525 Your argument certainly sounds plausible, and if I was an investor I could accept that line of reasoning with no qualms. Certainly, if I were the Venture Capital that remains in the business, I would want to promote the idea of an evolution within management to demonstrate that I was in control of the situation and this was simply one step in the ongoing business strategy. Unfortunately, nothing of the sort seems to have occurred. The CFO is leaving, suddenly, no replacement has as yet been announced, and in addition there has been a further flurry of management stock sales. It's all been played out in different stock market cycles, and, invariably a situation such as this has presaged financial turmoil. Of course, "this time it could be different" jog on grant Your argument certainly sounds plausible, and if I was an investor I could accept that line of reasoning with no qualms.

Certainly, if I were the Venture Capital that remains in the business, I would want to promote the idea of an evolution within management to demonstrate that I was in control of the situation and this was simply one step in the ongoing business strategy.

Unfortunately, nothing of the sort seems to have occurred.

The CFO is leaving, suddenly, no replacement has as yet been announced, and in addition there has been a further flurry of management stock sales.

It’s all been played out in different stock market cycles, and, invariably a situation such as this has presaged financial turmoil.

Of course, “this time it could be different”

jog on
grant

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