Coleman, Thomas B Purchase 8/3/2012 100.0K, $582.4K $5.82 - $5.82
Any thoughts on why this insider bought almost 600,000 worth of this stock on 8/3/2012? Does he need a tax write off, did this help his buddies sell the stock into strength at that time? Just curious of others opinions.
Please let's be real simple with this, we all thought this company was being run by competent, experienced management and board. They are not, since The founder passed, Raphael Recanati, this company is being run by incompetent management and an ignorant and careless board. Stock buybacks, placing orders during boom times, lack of expertise in accounting, legal and tax administration. I knew this company for many years and this is a disgrace. Poor shipping markets, par for the course. It has always been known that you have one great year for 7 years of poor shipping years. This is no secret. This company is going bankrupt because its leadership is poor. You have seen board members buy 50 million dollars of stock in the last 18 months and a board member buy 600 thousand dollars less than 45 days before the tax issue came up? These guys are just incompetent. As for management, they over leveraged and are arrogant, maybe even careless. Please do not give these guys credit for a strategy, they are idiots, who ruined a great company. As usual the recanati boys and fribourg are still rich and management has taken a lot of money out of this company. As for the shareholders and bondholders, yes we have been left holding the bag.
It is somewhat mystifying to me why a director would buy 100,000 shs only 45 days before the director resigned. Even the director that resigned purchased 5,000 shs on the same day he resigned.
I agree that from outward appearances the mgmt and board look like gross incompetents, but to read the profiles of @ board member you would definitely get the impression that they are quite capable. Just plain puzzling.
The statement issued today, however, was so strongly negative, that i do not think this is strategy.
At the current low price, it hardly is worthwhile to sell the stock.
What strikes me as particularly curious is that the Friday (Oct 12th) there was as 20,000 option block of puts bought at $4.00. This definitely is incredibly lucky timing or some one definitely knew something. I hope the SEC investigates this particular transaction, but I doubt they will.
No one looking for a tax writeoff, but insiders will do everything they can to preserve the value of THEIR equity, even if it means taking the rest of the equity away from the remaining shareholders at a steep discount. What we're seeing looks like the beginning of a shakedown, and I have little doubt the insiders will end up trying to take advantage of it. There is one thing that seems CERTAIN, OSG won't wind up in the hands of a bunch of commercial banks.