To prop up the price! Maybe letting him sell his other shares (at a much lower price) to the sheep.
One trick that these guys use is to "buy" these shares using money the company "loaned" them, then in a few years the company "forgives" the loan.
Think rationally and calmly about this...Why would anyone pay MORE than something is worth on the open market?
Well, oftentimes there are "synergies" expected (as in a merger), but this is a pure financial deal, not a merger, so the synergy argument doesn't play here.
A better theory is that the announcement is done to drive the stock price up. OK. Does this make sense?
Well, the guys are sleazy, and they associate with known felons. The press release is hilariously promotional, esp. the part about his "Austrian financial conglomerate".
We are in an environment where idiot day-traders and price-followers, who do ZERO DD except for reading a companies PR, will buy virtually any stock and bid it up (just like they did with SKYM, SATH, RFGI, NATS, JBOH, MHMY, and so many others). Then the insiders can sell. Like sheep to the slaughter!
If this guy is really lucky, he'll borrow from the co. to buy stock, get the masses juiced up and bid his POS stock up to 20 or 30 or whatever, then sell all of his holdings. The small investors will be left holding worthless paper, which will fall right back down to nothing.
buyer beware!
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