Since the notificatin to buy back $10M worth of shares (price at that time was about $16.50) which would be about 600,000 shares, the insiders have sold more than 80,000 shares which they had received by exercising their stock options at low prices. Though there may not be anything illegal in what was done to drive the price up so that their sales would be at about normal price, it still stinks. Does anyone have the capability to determine if Bamm has purchased the $10M worth of stock? Did the company buy the stock that their directors and officers were selling from their stock options? Since more stock was added to the total by the options, are the common stockholders holding shares worth about the same as before the buyback?
Click on a symbol for a detailed quote page Symbol Type Last Price/NAV Change % Change Day's High Day's Low Volume BAMM Equity $15.38 7/11/06 12:35PM -0.77 -4.77 $16.10 $15.38 59,866 BAMM Option $1.15 7/11/06 11:18AM +0.15 +NA $1.15 $1.15 4
I think you are misguided in your interpretation of an authorization to buy back shares. There are many companies with open authorization to buy back shares - it is a very common way of returning value to shareholders.
An authorization is not an obligation. I have not actually looked at the filing, but I think one of the news sources said they could buy these shares in the open market or through private transactions over the next 12 months. I doubt very seriously that they purchased any shares over the past couple of weeks when the price was artificially inflated due to R3000 index buying.
BAMM mgmt is not afraid to dump shares when they think the price is right. Look at the spike in 1998 and guess what the insiders were doing then! It was posted here that the stock was short-term overbought with momentum players and R3000 index buying. If you were an insider looking to better allocate your overall portfolio, why would you not sell when the stock is overbought? I sure would.
I would be very surprised if the company had bought any shares during this time and would be even more surprised if they had bought shares from the insiders - that might be illegal without making a public announcement - like they did recently with the Dutch Auction.
Thanks. I want to believe that you are right. I have done quite well with this stock over the past 10-12 years and still holding about 20% of my shares, waiting for the ratios for Bamm to reach that of their competitors.