Fireworks next week? General Safe harbor has no trading from 2 weeks prior to end of quarter until 2 days after day of anoouncement.. Wednesaday should be a long day.
Likely have not bought meaningful shates at all. Buyback started could be the program itself. Big vol on friday means buyback can start with more shares on wed. Brilliant, xin!
Regular mandatory Blackout Periods each year. Each Regular Blackout Period commences two weeks prior to the official end date of the quarter and ending two business days after the Company’s public release of its quarterly earnings.
For example, if a scheduled quarterly earnings release date is Wednesday, July 23rd, a Regular Blackout Period will commence on Monday, June 16th, and is anticipated to end on Friday, July 25th
This is useful information.
Is 2 weeks prior to the quarter the official safe harbor on insider trading? I could not find a specific safe harbor on buyback black-out periods other than the fact that the company should not have material non-public information, which can be interpreted in different ways (Although knowing earnings would qualify. One site I saw said blackout should be 2-10 days before end of Q.)
Anyway, can you confirm that XIN is holding to the 2 weeks blackout prior to the quarter end?
company has not said. volume in that period suggests they were not buying (would have been able to buy 40K-50K/day.
postings above are summaries of some of the safe harbor statements. My understanding is that there are different safe harbors a company can undertake. Appears XIN is trying to be conservative / give investors confidence at every chance right now.
Wed could start be about 63K/day purchase by the company.
Good info, thanks. I was curious so I calculated the last one month average volume, and it worked out to 247.28 K, which is less than the 3-month. If it weren't for Friday that would be a good amount lower. That would translate to just about 62K shares per day they could buy back starting Wednesday. Hopefully Monday and Tuesday are high volume so that would increase a bit.
totally agree! The text I saw has the metric as "weeks" -- so -- next week 62K/day limit all week. then following week a different number. For curiosity, I avg'd last 3 weeks and it comes out to 286K, so 71K/day.... -- so realistic to expect 10K or more bump.
So each 200K shares / day above 300K = another 10K / day averaged across 4 weeks (20 trading days)....
So next week, if we have 3 days of 500K trading vol and avg vol for 2 days - then following week would have a 90K/day limit.
(3 days x 200K/day excess = 30K/day over 4 weeks (20 trading days)).....
Of course, if we have 3 days of 1 million shares, we would be at a price of $3.50 or higher & then the next week could have XIN buying 163K shares or so per day, which would support the stock even higher...
Also 380K or so shorts may want to cover sometime soon....
From a website summary of volume buyback....
daily amount = 25% of avg daily vol of last 4 weeks.
(this could start on Wed the 16th).
The material portions of Rule 10b-18 are as follows:
Definition. A “Rule 10b-18 purchase” is generally defined as a purchase or any bid or limit order of an issuer’s common stock by or for the issuer or any of the issuer’s affiliated purchasers.
To be able to rely on Rule 10b-18 in make repurchases, the following four (4) conditions must be met.
Time of Purchase. The Rule restricts issuers from making repurchases that constitute the opening transaction in the security on a trading day, or that occur during the last 30 minutes before the scheduled close of trading. However, the limitations on purchases at the close vary depending on the average daily trading volume (”ADTV”) and public float. Issuers with more liquid securities (i.e. issuers with an ADTV of $1 mil-lion or more and a public float value of $150 million or more) would be restricted from bidding for or purchasing their securities during any of the following periods: (1) in the 10 minutes before the scheduled close of the regular trading session in the principal market for the security; (2) the 10 minutes before the scheduled close of the regular trading session in the market where the purchase is made; and (3) after the termination of the period in which last sales prices are reported in the consolidated system.
Price of Purchases. The purchase price cannot exceed the higher of the highest independent bid or the last independent transaction price.
Volume of Purchases. The Rule limits the amount of securities an issuer may repurchase on the market on a single day to 25% of the four-week average daily trading volume in its shares (that is, the average daily trading volume during the four calendar weeks prior to the week in which the 10b-18 purchase is to be made). However, issuers are permitted to make one block purchase of its common stock per week outside of the volume restrictions. Issuers have to include block purchases in applying the 25% vol-ume limitation. However, issuers would also be permitted to include block purchases in calculating the ADTV for their securities, thereby increasing the amount of stock able to be purchased within the safe harbor. The Rule defines a “block” as a quantity of stock that (1) has a purchase price of $200,000 or more, (2) is at least 5,000 shares and has a purchase price of at least $50,000, or (3) is at least 20 round lots of the security and totals 150% or more of the ADTV of that security. As an alternative to the 25% vol-ume limitation, issuers are allowed purchase up to a daily aggregate amount of 500 shares regardless of the ADTV of the security. Thus, an issuer’s purchases, on any single day, may not exceed the higher of 25% of the ADTV for the issuer’s security or a daily aggregate amount of 500 shares.
Manner. The Rule requires an issuer to use only one broker or dealer (per day) to bid for or purchase its common stock.
June 18th was the monday two weeks before the end of the 2nd quarter.
The new program started on June 21st. And XIN announced that the previous program ended on June 18th.
Is it a coincidence that the 2012 $10 million buyback program ended on June 18 - which is the start of the blackout period prohibiting insider buying of the stock, a blackout which expires this Tuesday night, August 15th?
I'm hoping, but we normally see a correction after the run-up. Hopefully things will be different this time. Management would be stupid to not buy as many shares as they legally can, with the stock price being 1/3 of book value.
I'm at least hoping for higher volume, so that they can buy back even more shares than they have the last 4 quarters.