On Track Innovations (NASDAQ:OTIV) shareholders have been quite upset with the downward spiral of the company's stock from it's 2006 high of $17.26 to it's current level of $1.40. Adding to investor distress is the company's lack of meaningful revenue producing orders in fiscal year 2012.
Up until a month ago, the only OTIV board member who would respond to shareholders was David Stone, a retired securities lawyer. When Jay Meier, OTIV's Sr. Vice President for Investor Relations and Business Development was terminated in early July, 2012, David Stone was bombarded with emails from shareholders expressing their disapproval of this action. Stone introduced Meier to OTIV in late 2011 in an effort to improve OTIV's investor relations with shareholders who predominantly reside in the United States.
David Stone responded to these emails with a private communication to shareholders. In his email, David Stone wrote about Jay Meier:
" With respect to Jay Meier, some of you will recall that I was instrumental in causing the company to hire him. I was also both a fan and a supporter of
his while he was in his position. However, the board of directors--of which I
am but one director and have but one vote--determined to terminate him following
a lengthy discussion."
Stone concluded his email with the following remark:
"please respond to this e-mail by
advising me (1) if you want me to stay on the board and continue my efforts.... If you want me
to go, I will be pleased to do so"
A month has passed since David Stone wrote this email, and I believe that many shareholders, including myself, have written to Mr. Stone and OTIV's board of directors asking that Mr. Stone resign. As a man of integrity and honor, I believe that David Stone should acquiesce to shareholders and resign from OTIV's board of directors.
Disclosure: I am long OTIV.