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Politics : High Tolerance Plasticity

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To: stockman_scott who wrote (14731)	6/28/2002 1:54:04 PM
From: kodiak_bull	Read Replies (2) of 23153

Scott, Ha! As I was saying. The only thing Kellner missed was the sweetest move of all. Executives raiding the corporation's treasury to use the shareholders' $$$$$ to buy back shares in the public market, thus pushing the share price higher (supply and demand being what they are) all the while, month by month, cashing in his incentive options and selling simultaneously into the public market that the stock buy back has just manipulated higher. When the music stops, Executive gets cash which has been indirectly transferred to him from the bagholders who bought the shares in the market, the corporation has bought back its shares at a high price: 1/2/00: Exec gets $100 million in options exercisable at $50/share. 3/2/00: Exec announces a $100 million stock buy back which raises the stock price, over a few months to $80, along with the bull market. 1/15/01 Exec exercises and sells shares at $80/share "as part of regular sales" over a few months, pocketing $60 million in cash ($160 million received, $100 million paid). 6/15/01 Shares fall to $30/share due to less cash in the treasury and end of bull/bubble market. 8/15/01 Exec begins construction of $35 million home in West Palm Beach. Kb

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