Today at 2:51 PM, a block of 200,000 shares of WebMD traded. Perhaps the Market Makers became aware of this block yesterday afternoon when the stock sold off suddenly and closed at the low of the day, $46.94.
Limp, I believe the answer to your question is the announcement of the tender, the insider selling during the time the tender was open, and insiders also tendering a portion of their vested shares was all legal as the insider intentions were pre-announced to all shareholders prior to the opening date of the tender offer. Regarding the Market Makers pulling bids when a large block appears, on a relatively illiquid equity, is not uncommon. It's what they do! I think the sheep, in this instance, represents shares of WebMD being held by weak hands. Insider selling influences the weak holders to sell or tender their shares thereby accomplishing the purpose of the tender, which is only part of the financial engineering plan. Last year during the month of September, WebMD issued a tender offer for a 5 million share buyback and they also bought back at the end of September, $100 million in convertible note debt. This was followed by the annual shareholder meeting in October where WebMD wanted shareholder approval to add 1.5 million shares to the 2005 Compensation Plan. It almost appears that we may be seeing a carbon copy of last year's financial engineering plan.
Check out these similarities in stock action last September 2013 vs. this September 2014. Last year on 9/10/13 WebMD's stock hit a high of $33.71 and then traded down for the rest of the month, bottoming at $28.03 on 9/30/13. On 9/30/13, WebMD bought back $100 million in Convertible notes. Fast forward to this September 10, 2014, WebMD hit a high of $49.32 and has traded down to today's low of $45.43 and appears to be headed lower! Will it bottom on 9/30/14, the day before the Annual 2014 Shareholder Meeting? Will Wygod buy back another $100 million in convertible note debt on 9/30/14? Who knows? However, one fact we do know and that is, we the shareholders, are being asked to approve another 1.7 million shares for options grants for the Executive Compensation Plan! Coincidence or just part of the Master Plan!
In principle, insider trading is prohibited.
So why then can directors of a company decide to make tender offers and can participate in it?
So why then can market makers hammer down a stock because they know somebody has to sell a big number of shares?
So why do we pay taxes to pay for institutions like the SEC that are supposed to protect us from this but in fact don’t do anything about it?
Are we sheep?
Watching trading of this stock one can only shake one’s head.
There it is, going up to 47.70; only to be hammered down by market makers because one guy has to sell 70.000 shares and they all know about it.
It is sad that one has to accept the fact that there is probably more honesty on a Middle East carpet market than on NASDAQ.
so what should i spend my check on???? glad im not greedy and wanting more. too bad ive noticed that your stock keeps dropping. TOO BAD
Them buying back the whole lot doesn’t prevent him from disbursing this own shares.
In fact, I’ve the suspicion management sold their shares to incite others to do the same.
Perhaps this effort was more successful than they thought, so now they have this huge surplus.
If they are bold, and show they have some guts, they would take the whole lot, the shares would go through the roof, shareholders would be happy, and in the fullness of time they could increase the float by making a split.
But then, they would have to have some guts…
limp i doubt that would happen,remember marty is trying to disburse some of his own shares,im ok with the tender outcome,,i still think we see over 55 by years end.
It is now a reality!! Review my post on WebMD & Artificial Intelligence and then go to the news release today at 7:00 am this morning which appeared on my Watch List for both Apple and DexCom Inc. entitled Exclusive-Two apple medical trials shed light on how HealthKit will work
I recall a comment from someone on this board that said my lack of knowledge about so many aspects of the healthcare business- and WebMD - is staggering. If he could get shares of WebMD, he would short it based on my post. All I can say to this individual is that your lack of vision and general ignorance of healthcare technology and what is already upon us is STAGGERING !! Only a fool posts comments that exhibit his own lack of common sense and inability to connect the dots! Now, you tell me who is the FOOL??
And what if Management decided to be bold and take all the shares offered?
After all, if they are really as optimistic about the future as they always state, they would replace those funds soon through increased earnings.
And if, for one reason or another, they all of a sudden needed additional funds, they could always issue new convertible notes.
Company asks for 2M shares and 7M show up! They should just ask for 100% of the shares - they would all tender. No support for a long way down. Talk about a vote of no confidence!!