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When Beazer Homes USA, a home builder, went public in 1994, it adopted a management stock purchase program to increase managers' stakes.
A management stock is a group of conspecific individuals that are managed separately.
Anacomp's shareholders received new Class B shares amounting to a 0.1percentt stake, subject to dilution by management stock options.
Mr. Crawford, whose firm stopped covering Herbalife last year, noted that in 1998 management stock options with original strike prices of about $14 were reset between $6.63 and $8.
They issue them through management stock options.
And with smart management, stock is taxed far less.
Similar(42)
That kind of thinking has helped waste management stocks outperform the market over the past 12 months.
Money management stocks like Janus, Blackstone, even Fortress were labeled meltdown candidates along with life insurers like Hartford.
Money management stocks already discount a 1,200 S&P 500, but I see an inflexion point in alternative investment houses like Blackstone.
They also plan to back into brokerage and investment management stocks, targeting a 20% weighting, up from 5% as recently as October.
Since last August, for example, the waste management stocks in the table below have risen 54%, versus an 18% drop in the S&P 500.
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