Post by
luberon on Jan 19, 2005 9:43pm
Recent insider buying
As I reported in an earlier post, there was significant buying (as per SEDI) in late December. This was as late as the 22nd, effectively at the end of the quarter given the holiday period.
I am having a hard time coming to grips with the dichotomy between that strong positive signal and yesterday's negative release.
Possible explanations:
- very bad luck at the last minute?
- management and the board misled by their technical people, poor communications upwards or simply out of touch with operations?
- something else that management was aware of that would raise the share price (e.g. interest in the company by an external party)?
Any thoughts on these, or other explanation???
While we're at it, if management itself was that far off should we be surprised if Schachter appears to have been "wrong"?
Comment by
v1pro on Jan 20, 2005 12:13am
I suspect that JS would not have taken the call if he suspected or knew of any kind of problem.I get the same feeling that all mgmt. were not on the same page or properly kept informed. A real mess and it is probably just beginning.
Comment by
specboy on Jan 20, 2005 8:20am
2 years ago, the CFO of TYCO, bought millions of dollars worth of their stock, shortly after they warned, at a price of roughly $23.00 a share.
Tyco subsequently bottomed at around $7.00 a share.
The CFO went to jail.
End of story.
Comment by
darkstar16 on Jan 21, 2005 5:21pm
Contrary to all the 'doomsdayers', the sky has not fallen, and FE will recover. The bashers just want to buy in cheaper, they know that there is value here.
Comment by
TheRed on Jan 22, 2005 3:37am
I am a sucker for value. Exactly what value are you referring to?
Comment by
darkstar16 on Jan 22, 2005 10:38am
They are trading for their nav based on last year's reserves. Any reserve additions at all will boost that value. Anytime I can buy a company that has lots of land that trades anywhere near nav, that's value. Most juniors have been bid up to double their nav.
They have had an oops, but this ain't CLL.
Comment by
burgoyne on Jan 23, 2005 7:35pm
Most juniors have been bid up to double their NAV? Maybe those with very high growth prospects I suppose. I've been able to buy juniors in the last month that are trading well below NAV, almost half of NAV in one case.