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Short the CEO - Buy the Stock?
Options backdating has sparked investigations at more than 120 companies and cost a few CEOs their jobs. But sometimes uncertainty creates a buying opportunity. By Katie Benner, Fortune reporter |
Comverse Technology ( CMVT)
2006 price change: -17%
Executive casualty: Former CEO Jacob "Kobi" Alexander, nabbed on the run in Namibia, is charged with attempted bribery and securities fraud.
Investment Outlook: Scary. The voicemail software maker's ex-CFO, David Kreinberg, has pleaded "guilty" to criminal conspiracy, as has former general counsel William Sorin, implying greater corporate malfeasance lies at the heart of the business. The stock faces the threat of delisting and it could be a long time before the clouds clear.
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Amidst backdating options scandals, American Tower uses another legal tactic for hiding executive compensation - backdoor options filtered through a subsidiary, Fortune's Bethany McLean reports. ( more)
How companies handle the investigation into backdating can have a big impact on their business - and investors. ( more)
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