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Gulf Resources, Inc. Message Board

  • alan74z alan74z May 8, 2013 12:54 PM Flag

    share buy back

    we could have seen a buy back today as an order to buy over 70,000 was executed at $1.07. Seems a large enough chunk compared to usual trading, we should know hopefully when they report in a week if they started buy shares even if not required to be reported in Q1 as it is now Q2.....

    Sentiment: Buy

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    • GURE should be in a "Quiet" period and unable to repurchase shares. The quiet period is due to the company knowing Q1 results but said results not having been released to the public at this time. I'm guessing short covering but won't know until around the 24th.

      • 1 Reply to sigtaushanksta
      • shanksta - I thought about the "quiet period/black out" period as well - however, from my understanding of the rules, the black out period limits transactions of insiders between quarter end and the 10-Q filing - as well as limiting company public/promotional disclosures during times of IPO/mergers/acquisitions in conjunction with Reg FD. Rule 10b5-1 establishes safe harbor for company repurchase plans which allows for trading within the black out period when the trading plan controls the repurchases rather than insiders. Since 2005, most share repurchase plans are not limited by black-out periods - these now work a lot like employee stock ownership plans where purchases are tied to payroll dates - and not reporting periods. I hope that helps.

    • Alan74z - it is a possibility. While rule 10b-18 restricts the size of the purchase per trading day at 25% of the ADTV over the past 4 weeks, companies may alternatively elect to purchase one block per week which is not subject to the volume cap. Given that GURE announced the "repurchases will be subject to, and executed in compliance with, applicable laws and regulations", I assume they will opt to comply with rule 10b-18 to take advantage of safe harbor provisions by staying within these two options of the rule. Or perhaps there are other buyers and the broker/dealer consolidated into one trade...

2.06-0.04(-1.67%)Oct 21 4:00 PMEDT