Most company executives look to maintain a good or at least courteous relationship with analysts. However, John F. Barry III, the founder and CEO of private debt and equity manager Prospect Capital, recently decided to go a different route.
During a conference call with analysts earlier this week, Barry found himself engaged in a heated discussion with Wells Fargo’s analyst Finian O’Shea.
It all started when O’Shea asked under which circumstances would the company “force the conversion of some of its preferred stock into common shares.”
Barry responded to O’Shea in an animated manner.
“No, we’re not running over and looking at break glass here. I just am amazed at these questions,” Barry said. “Is the house on fire? Why are we talking about something like that?”
Barry branded O’Shea’s questions as “absurd” later in the exchange.
“By the way, why don’t you do the world a favor and do a little research before you come on an earnings call with absurd questions like this? You don’t even know what you’re talking about,” he added.
Prospect has found itself under pressure recently due to concerns over its finances, dependence on outside investments, and allowing troubled borrowers to pay interests with debt.