| | | Re ADT - the story has several suspect twist that make me think that a SEC investigation is warranted:
1) an activist hedge fund investor (ex Icahn guy) comes in with a large stock position and twist management arm inti buying back stock.
2) the activist get's a board seat and ADT buys back his shares 6 month later (announced on 11/25/2013, close to the top), at which point the activist resigns his seat.
3) there is a huge short position in this stock, despite all those buybacks.
4) On 1/31/2014, or just 2 month after the activist sold his shares to the company, the wheels come off.
So the question is - did Corvex learn something, while he sat on the board? How come there was a huge short position in this stock, shorts have a bear thesis...
If shorts know something, the board must have known something too, including Corvex...This could be a huge insider trade basically, with several hundred million in profit (or loss avoidance) |
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