Management's response to my questionI heard back from Mr. Lorenzo. Only took a day or two to hear back; always a good sign.
Here is what he wrote in response to my question about the continued insider trading right up to the recent quarterly #s. We will have to disagree about what is considered material news (I believe all financials should be considered so, and subject to blackout). I would also argue that if this company ever wants to trade on the TSX they will need to change their thinking closer to mine. But I respect that they feel they are in the clear and I also don't want to give the impression I don't like their continued buying. I just think they should be in blackout before financials are released.
From Mr. Lorenzo:
"As for the issue of a blackout, the news about the Company's transition into
modest earnings now is not material enough to warrant: (i) a request to halt
trading; and (2) a blackout. In all our previous news releases, we have
consistently been promising that as the revenue of the Company grows and its
franchise program successfully accelerates, we will become profitable. We
have announced, prior to this news release, that our business plan for this
year calls for our entry into the profitable mode. We intend to continue
with our focus as well as intensify our efforts to become more profitable on
a continuous basis. The goal of every business is to make money, i.e.,
generate profit. This is not an event that should call for a "blackout" but
should become a "Company's habit".