One Year After Dan Price Gave His Employees A Huge Raise They Paid Him Back

[PEB]

Gravity Payments employees who all received a raise from Dan who fought off a lawsuit from his brother they returned the favor by giving him a new Tesla electric car. During that time he also cut his pay from almost a million to 70,000 dollars to help the company cover the raises he gave to his employees. All his employees and himself make 70,000 dollars now it turns out the secretly been dipping into this pay together to buy him a brand new Tesla for his efforts for his employees. Pretty good story and shows that if you treat your employees well they will thank you.





http://www.seattletimes.com/business/technology/gravity-payments-team-gets-ceo-a-gift/

 

[ryan3434]

A million to 70k

Wow that's a great move

 

[Stoic1]

Loyalty works both ways. Few CEO's and executives understand this.

 

[PEB]

A million to 70k

Wow that's a great move

Even better the national press has been great for the company when he first made this commitment. The business is up huge from before he did what he did for the company.

 

[no fat chicks]

What a straight shooter. Good guy does good thing, I feel this should be modelled after everywhere

 

[PEB]

What a straight shooter. Good guy does good thing, I feel this should be modelled after everywhere

The thing that blew me away was his own brother sued him because of what he was doing.

 

[GearSolidMetal]

And.... how are the profits of the company?

Up or down?

 

[uncommon]

The CEOs 970k per year cut could have translated to XX% yoy growth in an attempt to double/triple business worth (net worth of owner) and therefore salary.

Sometimes companies invest in share buybacks, sometimes they invest in infrastructure, this company invested in the utility of the worker.


Its a pretty common move for CEOs to cut salary down to nothing in an attempt to bet on the company.

 

[Bagatur]

good guy! his brother though...

 

[Mark Hunts FIST]

At first Dan was very happy, until employees asked he only use the autopilot function.

 

[ncordless]

And.... how are the profits of the company?

Up or down?

Profits have doubled since the raises according to the company.

http://www.geekwire.com/2016/trial-...ments-details-impact-move-70k-minimum-salary/

 

[Mark Hunts FIST]

Even better the national press has been great for the company when he first made this commitment. The business is up huge from before he did what he did for the company.

This is the last 4 years...up huge huh?

 

[ncordless]

Will be interesting to see what happens to share prices now that he threat of a firm-ending lawsuit has abated.

 

[GearSolidMetal]

Profits have doubled since the raises according to the company.

http://www.geekwire.com/2016/trial-...ments-details-impact-move-70k-minimum-salary/

This is the last 4 years...up huge huh?

Based upon their stock, I don't buy it.

 

[ncordless]

Based upon their stock, I don't buy it.

Stock prices are affected by more than profits. The company just got out of a firm-ending lawsuit. That kind of thing will harm stock price.

Additionally, this guy has a history of not exactly showing stockholders the dividends they want, and instead reinvesting the profits back in the business. That will keep stock prices down as well.

Who knows, but I would expect a stock uptick in the short term now that threat of destruction via lawsuit is more remote.

 

[uncommon]

Stock prices are affected by more than profits. The company just got out of a firm-ending lawsuit. That kind of thing will harm stock price.

Sales past 5y -7.4%

they sold 30.8 million past 12 months

market says they are worth 13.3 million

they had profits of negative 14.7 million past 12 months

key point is they are not only growing revenues in the last 5 years but losing marketshare.


The company needs to both grow
sales substantially and stop leaking cash on payroll/lawyers/ and whatever real estate expansions they have invested in.

And if you are betting on the company drastically increasing sales, why havent they done it in the last 5 years?

Additionally, this guy has a history of not exactly showing stockholders the dividends they want, and instead reinvesting the profits back in the business. That will keep stock prices down as well.

Not if capital is better allocated in the company. If i was a shareholder i wouldnt want a dividend... its a small cap momo bearly holding on that cant even turn a profit, why would i want to compound that problem?

Who knows, but I would expect a stock uptick in the short term now that threat of destruction via lawsuit is more remote.

Short term could be holding for the first half hour of the next trading day to holding for the next 6 months... vague.

And say you do enter here, how much risk do you allocate to the position? Putting on a hedge or a stop loss? or you just spin the roulette wheel and leave it all on until it happens to go your way.

Say it does turn around, do you have an exit target? how are you going to analyze value to determine an appropriate exit? Do you just leave it all on until you can buy a yacht?

I ask because its dangerous to follow stock advice blindly on an anonymous internet forum and people may get the wrong idea with your take on the situation.

 

[Gandhi]

So that car cost him 930K?, that better be some fucking Tesla!!!!!

 

[Gandhi]

Sales past 5y -7.4%

they sold 30.8 million past 12 months

market says they are worth 13.3 million

they had profits of negative 14.7 million past 12 months

key point is they are not only growing revenues in the last 5 years but losing marketshare.


The company needs to both grow
sales substantially and stop leaking cash on payroll/lawyers/ and whatever real estate expansions they have invested in.

And if you are betting on the company drastically increasing sales, why havent they done it in the last 5 years?

Not if capital is better allocated in the company. If i was a shareholder i wouldnt want a dividend... its a small cap momo bearly holding on that cant even turn a profit, why would i want to compound that problem?

Short term could be holding for the first half hour of the next trading day to holding for the next 6 months... vague.

And say you do enter here, how much risk do you allocate to the position? Putting on a hedge or a stop loss? or you just spin the roulette wheel and leave it all on until it happens to go your way.

Say it does turn around, do you have an exit target? how are you going to analyze value to determine an appropriate exit? Do you just leave it all on until you can buy a yacht?

I ask because its dangerous to follow stock advice blindly on an anonymous internet forum and people may get the wrong idea with your take on the situation.

This was a good post until you got all dorky with the stop loss exit strategy stuff at the bottom, he is not an FA obviously.....

 

[ncordless]

Sales past 5y -7.4%

they sold 30.8 million past 12 months

market says they are worth 13.3 million

they had profits of negative 14.7 million past 12 months

key point is they are not only growing revenues in the last 5 years but losing marketshare.


The company needs to both grow
sales substantially and stop leaking cash on payroll/lawyers/ and whatever real estate expansions they have invested in.

And if you are betting on the company drastically increasing sales, why havent they done it in the last 5 years?

Not if capital is better allocated in the company. If i was a shareholder i wouldnt want a dividend... its a small cap momo bearly holding on that cant even turn a profit, why would i want to compound that problem?

Short term could be holding for the first half hour of the next trading day to holding for the next 6 months... vague.

And say you do enter here, how much risk do you allocate to the position? Putting on a hedge or a stop loss? or you just spin the roulette wheel and leave it all on until it happens to go your way.

Say it does turn around, do you have an exit target? how are you going to analyze value to determine an appropriate exit? Do you just leave it all on until you can buy a yacht?

I ask because its dangerous to follow stock advice blindly on an anonymous internet forum and people may get the wrong idea with your take on the situation.

Where did I give any advice about whether to buy the stock or not? I expect the price of the stock on the news of the outcome of the case. But ultimately, as you say, it is a company that has some fundamental problems.
The question is how has their decision to pay its employees affected the company. So far, that's hard to say. Certainly, 5 year profits won't paint an accurate picture of a decision made less than a year ago

 

[uncommon]

Where did I give any advice about whether to buy the stock or not? I expect the price of the stock on the news of the outcome of the case. But ultimately, as you say, it is a company that has some fundamental problems.
The question is how has their decision to pay its employees affected the company. So far, that's hard to say. Certainly, 5 year profits won't paint an accurate picture of a decision made less than a year ago

I understand you weren't actively telling people to buy the stock, but there are people out there (many/majority) who hear

"profits doubled!"
"stock going higher!"

and go out to do their ametuerish homework on the stock any only look at data they WANT to see.

(there is enough data on the net to paint poop like gold and vice versa)

So im simply presenting a counter argument not an accusation. I figured it was worth 5 minutes to potentially save some low hanging fruit from making a mistake.