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Yum! Brands, Inc. Message Board

  • dividend_man dividend_man Jan 30, 2013 11:08 PM Flag

    This to will pass

    IF earnings are close to expectations we will see upside return, Jon Najarian says it is time to buy, I will hold & hope for the best.

    Sentiment: Hold

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    • I couldnt disagree with Mr Najarian more. In the past several days, some fund has been shorting this hard every morning at the opening and throughout the morning. The stock kept moving lower everyday in the early going. Volume in recent days was greater than 2x normal.

      Then suddenly late in the day the stock would recover all of its losses and finish near flat. Wanna guess who was buying hard to flatten things out? I know who my money is on. The company itself with their buyback program. The same buyer that has been buying stock in the mid and low 70s all year. Those were great buys werent they?

      Why did the company do that? Certainly they knew about these China problems. Because that's where the execs make their longest money. Selling stock. They buy stock with shareholder money (the buyback) and then sell their off option acquired stock and RSAs hand over fist.

      So you see, shorting YUM stock is management's job. That's why they dont like other short sellers. They want to be the primary short seller of YUM stock. If someone else comes in and shorts it down to nothing, then how can execs possibly make any money shorting it with their free options and RSAs? Best to use the buyback to keep the price high and keep EPS flat with a declining share count. Besides, that's shareholder money, not their money, so who cares.

      You just bought this? Hope indeedy!

      Sentiment: Sell

 
YUM
91.54-1.90(-2.03%)May 22 4:04 PMEDT