- Find a Hedgefund (DES) to buy a $1billion chunk of stock of a big box retailer.
- Use the power from that stock ownership to place activists on Board of Directors.
- Activist Directors fire the flailing CEO and purge the hangers on.
- Activist Directors handpick CEO and underlings to run the retailer.
- New MGMT devises plan to prop up stock price by buying back $billions in new stock.
- Corporate debt rises but Activist BoD deals out $millions in stock to upper level MGMT.
- Upper level MGMT sells off the stock (personal gain) that they propped up with stock buyback plan.
- Congrats! You’ve invented a perfect scam!
4 replies (most recent on top)
Welcome to America. This is the way it is.
Let’s see now; Lowe’s stock price is less $50.00 from where it was a year ago, genius Melvin is planning on exiting Canada after he shuttered the Mexican stores. Customers can’t find any help in the stores beyond cashiers who can’t leave their registers.
Yeah, that Melvin is a genius a lot.
Wow all that from this site.
You got it. Lowes is a scam all the way around. Now load that stinky red mulch at the gate.