The CEO clearly stated she will be buying $2 million in shares over the next couple months.
To claim he is lying about it makes you look more apt to take heat from the SEC than him.
You know something is broken when the CEO of a company promises to spend over $1M of her own money and the stock still falls over 20%. This is the current problem with China DangDang, Inc. (DANG), a Chinese e-commerce company. On June 20, co-founder Peggy Yu Yu appeared on CNBC’s Strategy Session to talk about the virtues of DANG. She explained why she and her family plan to buy back $2M of company stock over the next six months:
Quote from DANG CEO
DangDang stock has fallen so much recently. I think it’s at such a price I cannot resist buying it … the performance of the stock deviates from what’s going on in reality …. As executive and founder of the company, what I do is to make sure that our employees are not disheartened by the fall of the value of their stock options. At the same time, we sell as many products on DangDang as possible and deliver as fast as possible so we can deliver a good performance and financial performance …