Industry News: Nasdaq threatens to delist Meade. SEC investigates

[gary]

Troubles continue for U.S. telescope maker, Meade Instruments.

According to Associated Press, in mid June, after an article appeared in
the Wall Street Journal, the Securities and Exchange Commission announced
it would be making an informal inquiry into the company's stock option
practices.

To add further to their troubles, Meade made a press release on June 22nd
announcing it had received from Nasdaq a "Staff Determination on June 19, 2006
indicating that the Company had failed to comply with the requirement for
continued listing set forth in Nasdaq Marketplace Rule 4310 (c)(14) because the
Company has not yet filed its Form 10-K for the period ended February 28, 2006,
and that its securities are, therefore, subject to delisting from The Nasdaq National Market."

Expecting to announce a loss, Meade has repeatedly delayed filing its
financial statements for its finacial year ended Feb 28, 2006. The company,
which trades on the technology dominated Nasdaq stock exchange, runs the
risk of being delisted if the Nasdaq panel does not grant its request for
continued listing. Meade insists that it will endeavour to file its Form 10-K
"as promptly as practical".

[matt]

It's certainly a worry, and has been for some time.

Ohhhhh how I wish it meant I could pick up a 10" (12"...14") RCX400 on the super-cheap!!!!

[casstony]

It's probably only a real worry for Meade employees in the USA. If the financial troubles become too great some Chinese company will buy Meade and we'll still be able to purchase tha products.

Tony

[xelasnave]

Er maybe the fact they are under scrutiny of the regulatory boby may be of concern to their shareholders :lol: :lol: :lol: (besides other things).
They should liquidate and sell everything real quick ... I live for the day where I stumble on a forced auction of some class gear they just have to move and are happy to knock it down to the only buyer in the room ...me
There are some concerning practices around staff stock options to my mind as it makes valuing a company very difficult but nevertheless common practice I understand in the Nasdaq world.
alex

[GrahamL]

wonder who the major shareholders are ?

[gary]

% of Shares Held by All Insider and 5% Owners: 8%
% of Shares Held by Institutional & Mutual Fund Owners: 26%
% of Float Held by Institutional & Mutual Fund Owners: 28%
Number of Institutions Holding Shares: 34

TOP INSTITUTIONAL & MUTUAL FUND HOLDERS
DIMENSIONAL FUND ADVISORS INC 8.72%
WELLINGTON MANAGEMENT COMPANY, LLP 5.93%
DFA U.S. SMALL CAP VALUE SERIES 3.32%
HEARTLAND ADVISORS INC. 2.63%
FIFTH THIRD MICRO CAP VALUE FUND 1.76%

MAJOR DIRECT HOLDERS
PAUL D. SONKIN, (Investment Manager of the Hummingbird Value Fund)

[casstony]

I hadn't thought of shareholders, though only a very silly shareholder would put many eggs in the Meade basket, so I don't imagine shareholders would be nearly as worried as the poor buggers working for Meade who have their entire income to worry about. Still, if there is a firesale Alex, you'll need to watch out for my truck backing up to sale :)

Tony

[GrahamL]

thats an interesting read gary.. paul sonkin and humming bird have been buying up meade stocks for a year or more now ... as late as may this year
soon enough all players cards will be on the table.

What are there eyepieces like ?

[gary]

Well Monarchist Activist/Hummingbird and Summit Street Value fund seem
to have been working together nibbling away at it. :) They now own close
to 20% of Meade. Sonkin appears to be the key person at Hummingbird.
He and James Chadwick of Monarch Activist got themselves on the Meade
board back in mid June.

It will be very interesting to watch how much more they buy over the coming months.

[xelasnave]

mmm the current problems must drive the price of the stock down one would think making them easier to buy
alex

[h0ughy]

Yep RCX 20" going for a song! now who will step in and pick up the pieces, who has the most to gain! not only affects meade and shareholders, but those who own Meade Scopes, they will devalue due to this, especially if they have a fire sale to prop up the cash reserves!