I'm that poster. My (real) name is Michael Burry. I really did
call MWY, and that's what they said. If my posts are starting
acquisitions rumors, then that is not at all what I meant, and
I am not trying to create a speculative run on the stock. I'll
repost below what I posted on the Yahoo and SI Value Investing boards.
Called Midway. Here's my understanding:
As part of its spin-off, Midway had an agreement with the IRS to offer 1 million shares. The spin-off
was last April. They have already offered 750,000 to employees. They waited but the stock price never recovered and now they have to offer these 250,000 shares at current low prices. I get the impression they'd rather not. BUT the IRS required them to offer these shares prior to any acquisitions. Acquisitions are not necessarily in the works (although one has to wonder), but MWY wanted to get this out of the way.
I clarified that this does not affect or reflect on their current
buyback, and MWY agreed with that statement.
Overall, this puts me at ease, but represents a terrible blunder
by the company's PR by not putting out a more informative press
release. That is, unless an acquisition is being sought and they
want everything under wraps.
Mike |
