Does anybody have a view on why Greg McK keep buying the stock the more it falls? It has been a falling knife so far but he has been putting A LOT of money in the stock (more than 4mn $), of his own money (not options) and he now owns 2% of the capital ...catching up on Kosta. What are we missing?? Is he moving to be CEO? Waiting for a buy-out?...or does he just like to lose $$$, he even bought in the last couple of months when it was falling apart..
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I think the ceo doesn’t want to run this company into his retirement years given his bad performance. This could be his get out of jail free card. Given this particular managers background at Bain I see a managerial buyout. Will he gut the company as some LBO firms tend to do is anyone’s guess. During the conference call for Q4 he had to explain the skewed inventory of old vs. new. It could be he sees a terrific upside in liquidation value or he likes loosing money.
he bought 120,000 shares at the beginning of June just after the bad results, and 30,000 shares just two days ago...I April he bought 60,000 and another 90,000 in March....it is a LOT! At least he is a believer...I wish I had all that Money even if it was to waste on a falling stock!!
- all valid points but also maybe an indication that he thinks a turnaround is possible and that, as much as things have been very difficult, the company financial position has remained relatively sound and has been able to cut the debt to a very healthy level. As much as things have been difficult, the company mkt cap is shy of 200mn with sales of 2bn and 50 pc gross margin. It could still get worse but there may also be a view that there is value at this price. Either way I hope Greg is right!
That fish stinks!
History has shown that institutional ownership is not a great indicator. In fact, if no one but institutions and execs own stock, it's historically been bad news, because the market has bailed, and it's been proven over and over that large shareholders are not smarter than the market. Trading on emotional investment is not a smart decision. Make the trend your friend. Does anyone believe in Fossil's future prospects in an Apple Watch world? Unless he knows about a Google or Apple buyout, which would be illegal, that ship has sailed. Now if he wanted to do a pump and dump, not a terribly likely prospect when Americans and the world are short on disposable income because of coronavirus, more power to him.