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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: itilis2003 who wrote (22478)	11/10/2005 8:31:15 PM
From: Madharry	Read Replies (1) \| Respond to of 78748

Do you have any idea whether these purchase are financed through company loans. If they are not then that would very bullish. Many companies however have arrangements to induce their high level employees to purchase stock based on company loans. If the stock decline the company usually forgives or reduced the loan repayment. win-win for the executive. I was burned once with a CEO of a canadian company buying lots of stock as the price was tanking. I asked the investor relations guy point blank if the company was financing the purchases and he assured me that was not the case. After the company filed it turned out to have been the case, and if I am not mistaken there may have even been some put option involved.