Avaya's situation was primed to fall victim to an activist investor to drive a penny stock sell off. However, Avaya lucked out. An investor who, since 2017 has followed and invested in Avaya, yet made significant plays in the month of July 2022 to now become the single largest share holder of Avaya. Per a letter posted today, 15.4%. DO NOT DARE BEGIN ANY RACIST, IGNORANT COMMENTS. THEY ARE NOT WELCOME AND WILL NOT BE TOLERATED. This investor raised in San Francisco, Ivy League Educated, Self-Made and has successfully led and sold software as a service organizations. This investor has chosen to be mindful, thoughtful, considerate and engaged in Avaya where he has communicated he is driven to help drive toward the best value for all. This investor will work to prevent Bankruptcy. This investor was heaven sent and the angel Avaya DID NOT DESERVE considering the extreme mis management and the volume of YES MEN middle management who never spoke up to the ongoing wrong doings. This inestor did more for positive positioning of Avaya in one letter than the entire marketing organization has done in the total of 2 years. THIS IS NOW the best hope Avaya has had in a very long time. BRAVO.
**I do not believe that bankruptcy is a predetermined outcome. There are significant levers
available to the Avaya Board and Management that would allow the Company to rapidly rebuild
confidence among its customers, employees, partners, and investors (deliberately in that order
of importance).3
Your shareholders & creditors are important, but your Customers, Employees and Partners
must come first and rebuilding their confidence with #PrepareToWin is a great start. I
appreciate and am grateful for Mr. Masarek’s leadership**
PREPARE TO WIN, INDEED
10 replies (most recent on top)
The fact that people are not seeing what this guy's end goal is fascinates me! An investor's sole goal, for all intents and purposes, is to make a profit. He bought the stock at a bargin and he will sell his position first chance it makes financial sense for him.
And the letter. Oh the letter... What an obvious con.
Wish they started teaching finance/capitalism in grade school here in the states so y'all wouldn't be so uneducated.
Which is why he ou kished a very unique letter saying he doesn't want to do anything short of driving a Avaya to a smart corporate development partner.....
As long as the price is above $1.71 which is his average then he can sell and make money. By reading the document, in my opinion he is trying to talk up on how great the company can be and make recommendations to get investors to buy stock raising the price. If the price goes up to $3.40 he can sell and double his 15 million. About 20 percent of the stock is shorted, meaning people are betting it will go down. If investors or people dump money causing the stock to go up it can cause a short squeeze making the stock go up faster when people try to get out of their short position. If there is a squeeze then he can get out making a few hundred million.
Can't he just sell all of the stock for example if it gets to $2, and he just pockets the money he gains and runs? He is not mandated to hold it for a certain time frame correct?
Correct me for not knowing, but he is not mandated into keeping it and can just bail out whenever right? That's why I am a little confused why people are thinking this is a bigger deal than it is
I have ocean front property for sale in Nevada, ge-z how much money did the ceo send this guy to write up a bu-t kissing letter like that. Big deal he bought a few million dollars worth of stock at almost nothing to dollar cost average his investment. His break even price is $1.71 and is giving advice on how to get the 2027 bonds in the money by bringing stock up to almost $4 . If I invested that much money i would do the same and talk it up to double my 15 million. If he had such great ideas he could have bought half of the outstanding shares for about 28 million. Avaya is in debt billions, do you think his 15 million does anything? By his recommendations he is trying to push the stock up as quickly and as high as possible probably to make a few hundred million. Don't fall for the bull sheet.
{Google puts and calls. This guy is going to make money regardless what happens to Avaya. Noone sends a letter like that and makes it public. Come on people.}
APPARENTLY, a class act who owns 15.4% of the company, AS PROVEN IN THE ATTACHED SEC LINK Sends a letter like that and makes it public! BAM! (PS -- Have you noticed that the stock rose above he $1 mark for the first time in a month)??????????!!!!!!!!!!!!!!!!!!
https://www.sec.gov/Archives/edgar/data/0001418100/000119312522227517/d359845dsc13ga.htm
WOW. I don't know if I am more SHOCKED with the fact that someone of substance actually showed up and is WILLING to help, instead of raid Avaya -- OR-- that ANYONE would criticize this move....
WHEN THE COMPANY would become INSOLVENT if for not a redirection plan. This just goes to show how many people at AVAYA were CLUELESS that they survived simply because of compromised financial reporting and NOT EVER because they lived off of the success of the organization. CHEAP MONEY in the 2010s led to AVAYA being able to keep the doors open. NEVER DID THEY SURVIVE BECAUSE SUB PAR MARKETING AND SALES were actually SO awesome that people bought. Enterprise was NOT BUYING...DOORS STAYED OPEN because of financial engineering. Anyone who doesn't understand this needs to be gone yesterday. hair extensions and all.
This is an exceptional move. Very impressive. This is most unique. Most who take a stake just look to bother. This kind man wants to roll up his sleeves and contribute. What refreshing news after months of dark clouds.
Google puts and calls. This guy is going to make money regardless what happens to Avaya. Noone sends a letter like that and makes it public. Come on people.
HE-L YES!
I've been drowning in the replay of silly Avaya marketing one cloud cheerleading since July. Don't they know that the spin just makes them look worse than communicating nothing at all! This is the SINGLE MOST HOPEFUL news I've seen on Avaya since 2020.
He's correct. No room for anymore noise. Accept the layoffs. They are inevitable and absolutely necessary. Clean the books. Refocus on best solutions to keep customer base. And Sell to a big guy, like MSFT! Game on! Whohohoooooooo!