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


To: Spekulatius who wrote (53297)2/2/2014 2:23:24 AM
From: Jurgis Bekepuris  Respond to of 78751
 
Possibly. You are right that there's a possibility of abuse.

Situation was somewhat similar with UVIC - minus the shorts and stock decline (so far): the hedge guy came in, got a board seat, then got bought out & resigned board seat at the same time. I think that's one of the possible exits these guys look for... Even Biglari with CBRL is talking a buyout of his shares now.

But, yeah, the situation may be insider trading if stock tanks afterwards on bad results...

That's also the risk of following hedgies into positions. They have exits that we don't necessarily have...