Company Direction

Have to wonder what is going on here. I have been doing some digging around to better understand the situation. Five weeks away from the end of the cease fire between Starboard and Depomed that was agreed to back in 2016. Most I think saw that as an agreement that Depomed would make a honest effort to explore the a sale process. However, shortly there after the company completely dropped the ball on the Q3 earnings call, once AGAIN missing estimates and on top of that lowering their own guidance. To make matters worse Schoeneck was unable to answer several of the analyst questions with an intelligent answer. Oh and lets not forget the COO was given the opportunity to resign or be terminated.

So since the cease fire with Starboard, DEPO has lost 30% of its value. I cant imagine Starboard was aware of how bad the Q3 results were or they would have never agreed to the cease fire, or that there would be 30% downside after a favorable patent ruling. They would have continued with removing the original 6 BOD members (including Schoeneck), and once they have control of the BOD remove Schoeneck as CEO of the company. Makes sense to keep the dog and pony show going as long as possible if you think about it because an extra 6 months pay for this guy is like winning the lottery for the average Joe.

Some posters here have stated they think Schoeneck could fight off a BOD take over. Given Starboards track record, and the likely hood of another 20-30% downside from here yet in stock price after another piss poor earnings for Q4 to be reported in 2-3 weeks, I cant see the institutional shareholders not siding with Starboard and wiping the company's entire management team out and replacing them with the right people. I took a look at the qualifications and experience of the 3 new BOD members that Starboard was able to install as part of the cease fire agreement and they are impressive.

One thing I found incredibly disturbing is that several of the small to medium size institutional owners are teachers pension and retirement funds. Just kind of an eye opener that REAL people get hurt by companies that completely disregard their duties to shareholders and only look to enrich themselves. Jimbo still collects his fat salary regardless of how the company performs. Thats corporate America, I know.

Bottom line is, if you are management in this sinking ship your job is gone one way or another, either thorough buy out, through the proxy fight. Those with good sales will probably survive as well in either scenario getting absorbed by the acquirer or retained under new management. Everyone else should start dusting off the resume.

 

Your right only one who wins here is Schoeneck.

 

The IR guy Christopher Keenan apparently notified only select investors today that the company will be presenting at the Leerink conference next week, which the market interprets as no buy out forthcoming, and thus the sell off. Still no official PR, it probably comes tomorrow.

You have to wonder what other inside information is getting shared to the select few. Sucks for investors and employees who have shares.

 

This reads like someone who has no idea how our company runs, or operates. Reads more like someone who gets all their information off a stock message board or twitter. Good luck

 

i read the OP and agree, most of this information about Starboard and repeated earnings misses is verifiable in DEPO's own SEC filings, suggest you review these if you are not aware of what investors are. Not sure what "our" company is. It's a publicly traded company, owned by shareholders such as Starboard. Whatever you see or think is happening inside "your" company is irrelevant to shareholders who see a management team repeatedly missing earnings, reduced guidance, and a stock share price that only goes up on false rumors of M&A.

I know Starboards track record, Yahoo, Darden, and others when they cleaned those BODs up. This is their bread and butter. If "your" company thinks this is some message board or Twitter joke go back and read Starboards letter to shareholders. Writing is on the wall. The temporary hold on Starboard pursuing BOD replacement was a negotiated last chance, and I agree with OP, from here it looks like "your" company blew it. Significant decline in share price since and what I am hearing from analyst friends, upcoming Q4 numbers are set to disappoint too.

Good luck to you though.

 

Wow they PR'd this morning. How shady someone had this info yesterday.

 

Hmm here is the performance of the company:

Q3 16 - Missed and lowered own guidance
Q2 16 - Beat by 2 cents
Q1 16 - Missed
Q4 15 - Missed

If thats not the clearest measure that the management has no clue what they are doing, i dont know what is.

Any other sales reps care to take a guess if Q4 is another miss?

 

All you keep talking about(to yourself) is stock market press releases, and past quarterly earnings reports, and upset shareholders. This is not the place for that, you can do that on other websites.

 

So Depomed management is paranoid and not only monitoring Cafe Pharma (and likely other social media), but also attempting to moderate it.

But you are right, this website is only for sales reps to back talk mid level management and anonymously discuss who looked like a stripper at the Orlando convention.

 

This analysis is great. Thank you for writing it. Please continue! I learned a lot.

 

JG looked a little like one- but I would tag that in a second!

Q4 will be a miss- sell now.

 

This company is in such bad shape that I resigned and they actually wanted their $99 almost 2 year old printer back. Depomed is a joke.

 

Tooo funny! When I resigned 2 years ago, they wanted their cheap $10 blue tooth speaker back - good luck my Depo friends!

 

but yet you are on here 2 years later...

 

funny how there are no posts about proxy battles, and pension funds buying the the common stock of the company tonight

 

pensions???

 

Waiting for implosion!!

 

I'm looking at a position with CNS division. Should I wait for a Pain opening ?

 

Good things are happening with Nucynta, especially in the opioid marketplace today. Get on with CNS, crush your numbers, and move over to Pain when you can.