Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev | Next
Author: csbojlesen Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 41355  
Subject: Ilia Lekach and Parlux (Option Madness) Date: 8/13/2003 4:46 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 13
Look into PARL (Parlux Fragances) that makes (under license) designer fragrance brands of Perry Ellis, Ocean Pacific, Beverly Hills, and JOCKEY.

5.80 of BV/share (price to book of 0.56)
No Debt
4.42 Price/FCF
Total Common Shares Outstanding (past 5 years, in million shares)
8.55 9.98 9.97 10.27 13.81 (major share repurchases)

I grant profit margin and ROE has been far from ideal, but it's a cheap company that has been a target for acquisition not too long ago.

And then things get truly sickening:


Ilia Lekach, CEO got 500,000 LEAPS (expiration 2012) accounting for 71.4% of options granted (and some 6% of outstanding shares)

Frank A. Buttacavoli, COO/CFO got 200,000 LEAPS (expiration 2012) accounting for (you guessed it) 28.6% of options granted.

Mr Lekach has 30,9% of the company and the 2 together hold 2,118,000 options. Considering the 8,55 million shares outstanding, it shouldn't be long for them to take over the company thru (in part) excessive option grantng.

I forgot to mention that Lekach himself, made a tender offer for the company, after which he and the company was promptly sued in a class-action suit.

In all excitment, I forgot to mention that if there's change in management, the golden parachute is assured by among other things a doubled salary and options.

So it all comes down to a simple strategy: drive share prices down by acting irresponsible, use cash flow to reduce float, grant yourself more and more options, and take over the company.

Truly disgusting.

-< CB >-

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev | Next


Foolanthropy 2015!
Fistula Foundation: A World of Good!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Berkshire Hathaway

Collected Mungofitch Quotes
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.