Vertex Capital owns 12.3% of Support.com and shares are down 40% for the year. It has a negative enterprise value, which is based on the poor corporate governance and company strategy.
Issues being – four of Support.com’s six directors have been in place since 2009 or prior. During their tenure, its stock price has gone from $7 a share in 2007 to the current $1. The board has reigned over a destruction of shareholder value. But insiders are making any buys to show faith in the current strategy, either.
The answer is for the company to refrain from any action that would further hurt shareholders with an acquisition. Vertex says the company shouldn’t make any use of corporate resources without shareholder approval.
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