tag:blogger.com,1999:blog-7294165939647321702.post177058712367613096..comments2024-03-11T10:31:06.107-04:00Comments on <center><a href="http://www.barelkarsan.com">Barel Karsan - Value Investing</a></center>: Regulations vs Money-PrintingSaj Karsanhttp://www.blogger.com/profile/04493152766022812984noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-7294165939647321702.post-6149709223743798622012-01-06T13:04:13.990-05:002012-01-06T13:04:13.990-05:00From my point of view, this just isn't a wise ...From my point of view, this just isn't a wise practice!E1 asset management reviewshttp://www.facebook.com/pages/E1-Asset-Management-Miami/138640859562402noreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-50912664189018653552012-01-05T15:13:08.039-05:002012-01-05T15:13:08.039-05:00Hi Anon,
That is definitely a problematic situati...Hi Anon,<br /><br />That is definitely a problematic situation, but to my mind that should be regulated by insider trading restrictions. If senior managers took advantage of material non-public information in the case you describe (and it appears that they did, based on your description), they should be prosecuted.Saj Karsanhttps://www.blogger.com/profile/04493152766022812984noreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-35641859099115394652012-01-05T11:51:44.182-05:002012-01-05T11:51:44.182-05:00Not often I don't agree with you, but in this ...Not often I don't agree with you, but in this case I think you are wrong. The rules: - No repurchase is made at a price exceeding the highest current independent bid<br />price or the last independent sale price, whichever is higher.<br />- Non-block repurchase volume does not exceed 25% of the average daily trading volume for the preceding four calendar weeks,<br />serve an excellent purpose as the following illustrates. A (non-North American) company recently announced a repurchase of 10% of its shares at $30, while shares were trading at $24. Due to tight timing, not everyone was able to react. Insiders of course did, and in they received a dividend not available to more distant shareholders by selling out at $30 and buying back at $24. This rule does protect small, non-insider shareholders. Also, buying at $30 when the market price is $24 is wasteful of shareholder fundsAnonymousnoreply@blogger.com