I think NITE management are scumbags, that is just **my opinion**. My suspicion is that this whole buyback cancelling was purposefully not advertised, in order to line the pockets of the insiders.
The ethical thing to do, would have been at least to issue a news release. They did not. They cancelled the program on July 21. That same day, they had a company press release, on earnings, and various forward looking statements by Pasternak. Not a word about the cancellation. NOT A WORD.
When a buyback program is announced, companies trumpet that in a special news release.
When it is cancelled, don't we deserve to know it too?
Instead, the institutions who alwasy get wind of these things ahead of time, can profit at the expense of the common shareholder (FBCO shorting) who is the last to find out.
Why didn't they issue a press release? Why didn't they level the playing field for the common sharholder? MSFT - a company that I am heavily invested in is a MODEL of sharholder trust. They *refuse* to provide analysts and various institutions information that can materially affect the valuation of the shares AHEAD OF THE COMMON SHAREHOLDER. This is a famous fact about them - they release the information to all - at the same time, big institution and the little old old lady down the street with 20 shares, Wall Street, and Main Street. Which is why they have the loyalty and trust of millions of investors all over the world. And why NITE scumbags will never have my longterm money, no matter how high their stock may climb - my 'contribution' would not have even been a drop in the ocean in the big scheme of things, but this is a matter of principle.
Why did they not release a press announcement? Why did IR not reveal this when investors called? I'll tell you why. Because that would have meant that the selling pressure by institutions would have not been met by buying from the retail investor, and that would have meant that the price would have gone lower, faster, because no one would be absorbing the selling. And you see, insiders were selling, so they wanted to fetch as high a price for themselves. Just look at insider filings - "planned" and "sold" as far as the eye can stretch (also on July 22, day after they cancelled the program).
Personally, I find this disgusting. Pasternak is surely not a poor man. But he could not find it within himself to level the playing field by telling his small shareholders what was up. Instead, he used them as a cushion to hold up the price while he sold off - I'm sure he garnered a few extra dollars he needed for groceries. This at the cost of his retail investors, many of whom face horrendous losses and margin calls. Just look at the trading - it was the same story, every day - institutions selling (big blocks), the little guy buying.
Would it have been too much to ask that he level the playing field, so that the small investor too could protect himself? Or is the almighty dollar so important, that he needs to squeeze out a few extra, never mind the pain to the small holder?
It is quite clear that the small investor would not have gone in and bought all the way down, had the company management had the decency to issue a press release - if the buyback annoucement merited a press release, surely a cancellation did too. An announcement would have allowed the common holder, just as the large institution protec himself, and either sell, or not buy more until the stock stabilized. Instead, look at the carnage. Do you realize how many people faced margin calls? Do you know how many people lost huge amounts of money? All so Pastenak and gang could grab a few extra bucks.
I for one feel at least partly responsible - I should have somehow ferreted out this information. Now, I'm faced with the painful task of calling three people with apologies. They had asked me whether I thought NITE was a good company to hold long term. I told them, just as I did on this board, that the business was great and that I thought Pasternak and management sounded good. Management is key to any company you invest in. I listened to conference calls and I thought I had a "feel" for who these guys were. So all in all, I thought NITE was a good stock to invest in. I don't know to what degree that influenced their decision to invest, but I feel responsible - thank God, they did not as yet lose money, because I told them the stock was under pressure, and I promised to call them when I thought the worst was over. This I did just before I announced on this board that I'm buying my second "long term" position - at 28 5/8 and just under 30. I called and told them, IMO, this is the time - there is still risk, but now is the time. I regret this deeply. I regret just as much that I announced on this board my first buy at 48 1/2.
I am sure many will say I've gone off the deep end, and I'm exaggerating, and that NITE management are not "scumbags". Well, to each his own. That is MY OPINION. And opinions can be wrong - as we have seen abundantly. However, I call 'em as I see 'em. If I am wrong I own up. But I also do not hesitate to call a spade a spade. In MY OPINION, NITE management is SCUM.
Morgan |
