|
Market Commentary: Standard Investment
Chartered
(May 24, 2004)
Standard Investment Chartered, Inc.,
a securities firm recognized for its expertise in thinly traded companies, has
granted its permission for Forum use of the firm's May 24, 2004 "Market
Commentary" report on thinly traded securities, which includes a section on
Crowley Maritime Corporation. The Commentary reports on the
recent annual meeting of shareholders,
and refers to Standard Investment's
October 8, 2003 equity research report on Crowley.
The text of the section on Crowley is copied below, and the
complete Commentary can be downloaded from the following link:
|
STANDARD INVESTMENT
CHARTERED, INC.
Member . NASD. SPIC
|
Thinly Traded
Securities
Market Commentary
May 24, 2004 |
2801 Bristol Street, Suite 100
Costa Mesa, California 92626
Jack Norberg (800) 746-5743
Jan Koltai –Trading Desk (714) 444-0033
Richard Dixon – Arbitrage (714) 444-4300 |
STOCKS IN THE NEWS:
***
Crowley Maritime Corp.
(NASDAQ-CWLM: $950 bid - $1,200 ask):
The company’s annual
meeting was held May 20th. Management’s proposals for director candidates
and executive bonuses were approved, given their 76% control of votes.
During the discussion period, two family member shareholders expressed
concerns about the absence of dividends and the amount of the CEO's
compensation compared with other companies. The Board declined to discuss
its views on issues presented at the annual meeting and failed to respond to
the concerns raised by the proxy advisor Glass Lewis & Co., which
recommended voting against the Incentive Plan and four of your eight
director candidates.
Regarding corporate
governance issues, the company's Chairman, CEO and controlling shareholder,
as well as his cousin are members of both the five-person Audit Committee
and the six-person Compensation Committee, and that the Compensation
Committee is chaired by the company's lawyer. While the membership of these
committees may meet applicable regulatory requirements, most investors
prefer to see fully independent members of audit and compensation
committees. Independence of the Compensation Committee is particularly
relevant to the new "2004 Management Incentive Plan," which appears to give
that Committee discretion to define the bonus payments for all executives,
including Mr. Crowley.
For further information
on the company and a detailed analysis of investment rationale, please see
our report “Crowley Maritime Corporation – A Convergence of Trends,
Circumstances and Regulation” published October 8, 2003.
***
|
The material
contained herein was prepared by Standard Investment Chartered, Inc.,
2801 Bristol St., Suite 101, Costa Mesa, California 92626. Phone (714)
444-4300. The information presented herein has been obtained from
sources believed to be reliable but no guarantees or representations are
made or intended as to accuracy or completeness. In and of itself, this
report should not be construed as a solicitation for the purchase or
sale of securities inasmuch as such investment decisions should also
take into account a potential investor’s objectives, risk tolerance,
investment experience, financial resources, and other factors relevant
to determining the suitability of a potential transaction. Any opinion
expressed herein is as of the date this report is written and subject to
change without notice as corporate events and market conditions change.
Standard Investment Chartered, Inc., or its employees, officers,
directors or shareholders, including the author of this report, may own
or buy and sell the securities referred to herein. Past performance in
neither a guarantee nor an indication of future profits or losses. |
|
|