Prior to all of Henry's shenanigans, I think there were around 38M shares post split (3.25:1) for Entropic. This was diluted by the RF Magic acquisition, the Arabella acquisition, the printing of shares to line exec pockets, the hefty shares to the underwriter for IPO, to bring us to the current outstanding shares of around 70M. Hell, I think Henry has around 2.5M, and versus 70M there's about 3.5% detrimental dilution right there. Yes, they have diluted it by around a factor of 2 in total! If somebody has bothered to get the exact numbers, please reply them in, these are rough.

All of these shenanigans were BAD deals for original Entropic, which is the MoCA technology we all speak of and the market values. RF Magic is not 1/2 as valuable as original Entropic/MoCA, yet this is roughly what was paid in stock dilution. Arabella is sacked. The IPO did no good for an acquisition scenario. Does anybody think this exec team was worth any dilution? - NO. All pretty much wasted dilution.

Then, there's all of the R&D money wasted on canceled projects - maybe $60M+? We heard about the processor, router and the broadband access to Asia market that were both sacked after huge expense. The divisions in China, France, Israel and who knows where else, all were a flop. Delusions of grandeur as a grandiose international corporation by Henry?

If you look at $250M+60M over 38M shares, that's about $8.15/share. But all the shenanigans have taken that to around $3.55/share, if it ever did sell for $250M.

The investors deserve it. John Waleska and Tom Baruch let Henry screw this thing up and line his own pockets. Also Leo Spiegel, another huge investor that quickly disappeared off the BoD just before IPO (so he could sell at will?).

Coppergate's $190M looks more attractive than Entropic's pipedream of $250M now, doesn't it? More like $125M, on way more money invested.

Is this IMHO or simply fact?


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