GameStop Director Shedding Shares
GameStop Director Shedding Shares
October 13, 2009
On the surface, GameStop appears to be doing well, even gathering positive assessments from financial analysts on its prospects for the holidays in a weakened economic market.
But, according to an article on Gamasutra, GameStop Director Leonard Riggio has sold 2.3 million shares of company stock, netting him more than $60 million, and dropping his stake in the company from 6.9 percent to 5.5 percent. Riggio is also founder and board chairman of Barnes & Noble.
From Gamasutra:
"Unless he desperately needs $60 million," it appears that he doesn't think the stock is going to be performing very well, insider trading firm Form4Oracle co-founder Alex Romayev told financial magazine Barron's. "He's got a lot bigger stake in Barnes & Noble. Clearly he thinks selling GameStop is better than selling Barnes & Noble."
Even more interesting was a note at the end of the Gamasutra story:
But Romayev told Barron's that the last time Riggio made a GameStop shares sale not related to options, he divested just in time to avoid a 62 percent loss.
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Rodrigo Ybáñez García: Here is a trailer of Dead or Alive Paradise. It´s basically a summary of the game...
Posted 03/12/10 at 01:54pm
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Valdearg: *sigh* I'm friends with some sad, sad people.. If they weren't such good drinking buddies.. Lmao.
Posted 03/12/10 at 01:54pm
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DarkSaber: Pssssh, the answer is Populous.
Posted 03/12/10 at 01:54pm
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Posted 03/12/10 at 01:54pm
Valdearg: Seriously? I mean.. Couldn't they have picked a different topic to argue about?
Valdearg: Seriously? I mean.. Couldn't they have picked a different topic to argue about?
Posted 03/12/10 at 01:53pm
Valdearg: Wow. Two of my friends are arguing on my facebook about whether Age of Mythology or Black and White was the better God Game...
Valdearg: Wow. Two of my friends are arguing on my facebook about whether Age of Mythology or Black and White was the better God Game...
Posted 03/12/10 at 01:52pm
DarkSaber: I was having a shower. That time of the week again. Boys Brigade? Never heard of them, but I was in the Beavers.
DarkSaber: I was having a shower. That time of the week again. Boys Brigade? Never heard of them, but I was in the Beavers.
Posted 03/12/10 at 01:44pm
JDKJ: Your deafening silence says it all, Saber.
JDKJ: Your deafening silence says it all, Saber.
Posted 03/12/10 at 01:39pm
JDKJ: Be honest, Saber. You were in the Boys Brigade when you were a lad, weren't you?
JDKJ: Be honest, Saber. You were in the Boys Brigade when you were a lad, weren't you?
Posted 03/12/10 at 01:39pm
DarkSaber: Also, had Schrodinger been hanging about?
DarkSaber: Also, had Schrodinger been hanging about?
Posted 03/12/10 at 01:37pm
JDKJ: And did the mice then get to playing?
JDKJ: And did the mice then get to playing?
Posted 03/12/10 at 01:35pm
DarkSaber: ah, but was it also out of the bag?
DarkSaber: ah, but was it also out of the bag?
Posted 03/12/10 at 01:33pm
JDKJ: And didn't the cat have to be curious nine times before its curiosity got the better of it?
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Posted 03/12/10 at 01:29pm
Andrew Eisen: "Curiosity killed the cat." Makes you wonder just what that cat was doing when that phrase was coined.
Andrew Eisen: "Curiosity killed the cat." Makes you wonder just what that cat was doing when that phrase was coined.
Posted 03/12/10 at 01:28pm
chadachada321: And to really bring this full circle...tradition would have "Under God" omitted from the pledge, because it was only added in 54
chadachada321: And to really bring this full circle...tradition would have "Under God" omitted from the pledge, because it was only added in 54
Posted 03/12/10 at 01:27pm
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Posted 03/12/10 at 01:23pm
DarkSaber: I know, makes you wonder how a practical joke becomes a centuries old tradition. I doubt when it first happened people looked at each other said "We should do this EVERY year!"
DarkSaber: I know, makes you wonder how a practical joke becomes a centuries old tradition. I doubt when it first happened people looked at each other said "We should do this EVERY year!"
Posted 03/12/10 at 01:21pm
JDKJ: That thing where the Commons slam the door in Black Rob's face and make him bang on it before they'll open up always makes me laugh. Who comes up with this shit?
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Comments
But Romayev told Barron's that the last time Riggio made a GameStop shares sale not related to options, he divested just in time to avoid a 62 percent loss.
Isn't that the very definition of 'Insider Trading'?
I'm kinda wondering myself why the SEC didn't jump all over that one.
The SEC has never had a very good track record of going after insider trading unless someone famous is involved. For the most part the 'sexy' factor is just too low.
I think the cases of outsiders trading on information from insiders are more frequently prosecuted. It's not that easy to make a insider trading case against an insider. Who can tell when they trade on publicly availabale information as opposed to information peculiarly within their knowledge?
It sounds like it.
Back in the 80's Ray Kassar sold a bunch of his stock right before announcing Atari wasn't on track with Q4 projections right before the videogame crash. He was investigated but determined to be innocent of insider trading, and he even gave the $$ back. By that time, however, the damage had been done.
In either case, if it isn't insider trading, then it's just plain stupid timing.
Its only 1.2 or so percent hes selling, I don;t see much of a problem here unelss the stock drops in price in the enxt 6 months.
Until lobbying is a hanging offense I choose anarchy! Stop supporting big media and furthering the criminalization of consumers!! http://zippydsmlee.wordpress.com/
If the Director of a company sells off $60 million of their own shares, what do you think will happen to the company share price? It won't drop in the next 6 months. It'll drop in the next 6 hours. Which is in fact precisely what's been happening. Riggio sold on Oct. 8 when the price was at a historic high for the past 30 days. It's been dropping ever since.
yep. A major share holder selling stock is a very bad sign for most traders and tehy will attempt to ditch it thus lowering the value.
Lets just see if he buys it all back + some for $30 million.
E. Zachary Knight
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http://www.theeca.com/chapters_oklahoma
Maybe he wants to buy Borders?