LodgeNet Interactive Corporation (LNET) stock today traded 1/7th of its float despite of the public announcement that Mr. Mark Cuban, #188 in Forbes List for United States, owner of Dallas Mavericks & beneficial owner of more than 6% of the LodgeNet (lol), sold on open market ~700K LNET shares since the end of August. Most likely Mr. Billionaire was looking for a pocket change at around $240K…
LodgeNet recently hired a new CEO, Richard L. Battista.
Mr. Battista background includes a nearly 20-year career at the News Corp/Fox companies. Mr. Battista most recently formed Pontiac Digital Media through which he has created and invested in media properties with a focus on the digital and content arenas. Also he served as Executive Vice President, News Corporation and immediately prior to that he was President of Fox National Cable Networks. Before those roles, he served as Chief Executive Officer of the Gemstar-TV Guide International, from 2004-2008 and directed the successful $2.3 billion sale of the company to Macrovision in May 2008. He was the chief architect of the company’s impressive turnaround in which it revitalized TV Guide Magazine and TV Guide Network while significantly expanding its patent licensing program and its reach across emerging digital media platforms, including the significant growth of TV Guide Online. Impressive background, isn’t it?
A few days back LodgeNet announced that, as part of Richard L. Battista’s employment as its President and Chief Executive Officer, the Company granted Mr. Battista 550,000 shares of restricted stock. Moreover, LNET also granted Mr. Batista options to purchase 550,000 shares of the Company’s common stock at an exercise price equal to the fair market value on the date of grant.
Who’s going to accept CEO position in a company at its tough stage without knowing that it’ll be turning around?
Who’s going to accept stock shares/options without knowing that they’ll be increasing in value?
Are you thinking what we’re thinking?
After-market hours LodgeNet released Form 8-K:
On September 21, 2012, LodgeNet Interactive Corporation (the “Company”), received a letter from The NASDAQ OMX Group (“NASDAQ”) notifying the Company that it fails to comply with NASDAQ Listing Rule 5450(b)(3)(C) because the market value of publicly held shares of the Company’s common stock has fallen below the minimum $15,000,000 requirement for continued listing for a period of at least 30 consecutive business days. The NASDAQ letter has no immediate effect on the listing of the Company’s common stock.
The Company will continue to monitor both the bid price for its common stock and the market value of publicly held shares of its common stock, and will continue to assess the various alternatives available to it to allow it to regain compliance with the minimum bid price rule and the market value of publicly held shares rule.
We believe that LodgeNet will do EVERYTHING to drive stock price up to over a dollar. Take in consideration that LNET stock is heavily shorted (4.16M shares short from 14M float) and may be “short squeezed” at any trading session.
LodgeNet Interactive Corporation
3900 West Innovation Street
Sioux Falls, SD 57107-7002
LNET provides interactive media and connectivity services to the hospitality industry in the United States, Canada, and Mexico. The company designs, develops, and operates interactive television (TV) systems at hotel properties that provide guest entertainment and other interactive services. LNET serving approximately 1.6 million hotel rooms, reaching more than 500 million travelers annually and having nearly 900 team members worldwide.