Day wants to prop up the stock for another 9 days. that's when the remaining 1/3 of his options vest. He has to hold the stock above $30 for 15 days. after that, a buyout at any level gets him paid, and allows him to move on.
There does seem to be a significant level of buy out speculation going on here. The retail sector in general has had a lot of such speculation over the past few months (e.g. Dress Barn, Dillard's, Gap, etc.), NONE of which have actually occurred.
RSH's current valuation, its weak and declining competitive position and its lack of real estate assets make a buyout extremely unlikely.
Further, why would a company be so busy buying back its stock if a buyout was going to occur? I'm sure Day's contract takes care of him in the event of a buyout. So why the big push to prop up the stock with company funds, particularly at this level when it costs the company so much to do so?!?! It's certainly NOT because a buyout is in the making. Rather it's because there ISN'T one .
Think today is a fake out. Nothing but mergers reported today. Tomorrow, CPI and other reports coming out. You may be right but I don't think so. Reason for fake out assumption, lack of news and volume.