This company has sparked my interest with insiders buying nearly 100 MILLION dollars worth of stock within the last year or so. All I hear is bad things with regards to management, earnings, etc...but I'm just curious to know if anyone has any ideas or theories as to why insiders would be buying that much stock if they thought the company was not in good shape.
Usually when insiders buy....the stock goes up. I've watched it happen with a lot of companies.
Again, I'm not familiar with this company..so i'm just curious. Would it have anything to do with stock options...or with taxes or something?
Thanks in advance for the help.
income. I see a "restructuring" coming in 2008. Ya just can't try to consolidate this type of business by overpaying for facilities in competitive areas. It doesn't work.
My regret is that I didn't short at $40+/share.
there have been many companies before brookdale that tried the same "business plan" as the financial shysters at bkd. Think about Bob Elkins at IHS. same situation.
This is not a business to try and "consolidate". It just doesn't work.
"...I'm just curious to know if anyone has any ideas or theories as to why insiders would be buying that much stock if they thought the company was not in good shape."
A serious question deserving of a serious answer...so here it is...
These insiders are complete morons that have no idea of what they're doing. Yes, one would think they would have some advantage being insiders. One might assume that they could project the company's performance and would buy stock in advance of improved financial performance. That's a reasonable assumption to make in most cases, but the mangement team here has proven over and over that they are incompetent. Oh, and Imbecile...I know your're reading this. I was just curious...what's it like to own a stock that is down 4% on a day the DOW is up over 300 points?
i guess that's kinda the answer that i expected. i just find it hard to believe that even an incompetent person would plop down 100 million (of his own money) if he wasn't ABSOLUTELY SURE of his investment.
I could understand if it was just company buybacks or something of the sort...but from what I can tell, it's his own personal money.
I was hoping for an answer like "it's not really his money...it's just options hedging, etc..."
I kicked myself for not investing along-side of the CEO of Williams Sonoma when he threw 10 million of his own money into the stock...at a point where the stock was at a 52 week low. The day he bought, was the ultimate bottom....and the stock immediately saw a 30% increase in just a short while.
I realize this is not the same scenario...because the BKD stock is already a lot lower than where the insiders have been purchasing...but the 100 Million dollar figure just keeps jumping out at me every time I discount the stock as just a poorly run company which will soon see it's own demise.
I just have a suspicion that a year from now I might be kicking myself again...saying "did you really think they'd put 100 MILLION into something that wasn't going to appreciate."
Even if they are crooks (which i'm not suggesting that they are)...but that would be even more reason to believe it might go higher. haha...because unfortunately that's how it works a lot of the time.
Anyway, thanks for the ideas.
Good luck to all....and sorry for the long post!