Violin Memory CEO and board member splash $180k on firm's shares
Money meets mouth for big chief
Violin Memory CEO Kevin DeNuccio has spent $37,500 to buy 75,000 shares of Violin at an average $0.50 share price, demonstrating his visible commitment to the company.
He had previously bought 125,000 shares in two transactions since 2013. The first one, for 50,000 shares at $3.08/share, has so far lost around 80 per cent of its value.
A Violin board member, Donald Listwin, bought 286,000 shares on March 15 and March 17, at an average price between $0.50 and $0.49, meaning he spent around $141,600.
Just to remind ourselves, Violin is in a parlous state with declining revenues, persistent losses, a diving share price (down from $0.88 to $0.47 over the last three weeks), a strategic review which produced no offers for the company, an aggressive activist investor trying to force a company sale, and is facing NYSE delisting.
And it has just restructured, sacking 25 per cent of its workforce – 86 people.
For general investors, buying shares in such a company would be a heroic gamble.
Huge kudos to both DeNuccio and Listwin. Spending that amount of cash is really putting your money where your verbal orifice is located. ®