This page has been archived and commenting is disabled.
The Tweetsucker Proxy: Did Twitter's CEO Crash The Company To Buy More On The Cheap?
Back on July 28, following Twitter's second quarter earnings release which beat across the board (sending the stock surging above $40) just before Jack Dorsey came on the call with some of the most devastating guidance ever revealed for a social media company (sending the stock crashing), which resulted in the lowest TWTR stock price since the IPO, we had one question: was Twitter management getting its conference call "tips" from the Coen brothers, and particularly their 1994 masterpiece, the Hudsucker Proxy...
Is TWTR management pulling a Hudsucker Proxy?
— zerohedge (@zerohedge) July 28, 2015
... in which the board of a public company desperately tries to crash their own stock so they can buy it on the cheap?
Today we got the first answer, and it was affirmative. In a Form 4 filed earlier today, we found out that a crash in the stock is just what founder and interim CEO Jack Dorsey was waiting for before buying another 31,627 shares on Friday for a price of just $27.67.
After Friday's purchase, Dorsey now owns a total of 21,856,513 total shares, or about 3.3% of the total.
But, what is more notable, is that at $27, Dorsey could buy 50% more stock for a given amount of cash, than he would buy had TWTR remained at the $40 price level where it was when he started discussing TWTR's growth potential on July 28.
So, as TWTR actively pursues its next CEO, we wonder: what is the likelihood it would be the infamous Norville Barnes. Because "you know, Twitter for kids."
»
- 15666 reads
- Printer-friendly version
- Send to friend
- advertisements -
and he'll get away with it too (as long as he tipped off some politicians first)
meh
No matter the price he paid, it's still an over priced P.O.S.
What he said
exactly, db51, the "stock" is not worth a plug nickel. let him buy all he wants. i say he is only trying to support the falling price
You a communist?
To tweetTM is to pump the very life blood of the nation's thoughts through this huge, throbbing, generous American political heart.
How else will we know what Bru...Caitlyn Jenner is thinking, or more importantly, what he, she, it is feeling?
Wait, Cait has twitter? For how long? I can't believe I've been missing out, I gotta fire my PA.
Yep, Google, Apple, or Facebook could put these dumb asses out of business virtually overnight if they wanted to.
Buy Twatter? LOL! Why? Where's the barrier to entry? It's MySpace 2.0.
But, but, but we have free and fair markets in the US and the SEC is diligently monitoring every young Indian trading from his parents' basement.
Nothing better than playing the classics and the SEC will never notice during their fap-o-rama's......
Sounds like what a country or ten might do if they wanted physical gold
Buying stock before you announce an NFL deal... sounds like the American way
Got that right, imma gunna lode up @36 oz and buy me a seat on the NYSE after it hits 10,000. I got fast fingers the ladies at the Long Branch Saloon say so
$27 per share sounds like a steal for a company with negative $1 EPS. I want in. Are any of the other 670-some million shares for sale?
Edit: Damn, I missed the boat. Up to $28.80 now. I can't afford that.
Pump and dump: you're doing it wrong. ;)
Twitter is disruptive technology. A sleeping giant. It's hard to see that from a bunker, though.
Please say you left the /sarc tag off?
Nope. It's replaced every newspaper and even TV (twitter breaks news faster), and I can even get ZH updates there. It makes visiting any news site pointless. It also allows blogs to aggregate news to their topics. If you don't see the value in this then it's a you problem.
Haven't seen you post for a while, Mr Devo.
What's up, buddy? We don't get reception in the bunker, so I decided to come out and join society.
Well let's do the math.
31,627/21,856,513 = 0.1447%, hardly a very large percentage.
And I guess the Tylers just overlooked this form, from 6/3/2015:
As of December 31, 2014, Mr. Dorsey held an option to purchase a total of 2,000,000 shares of our common stock. 25% of the shares of our common stock subject to this option vested on May 9, 2012, and the balance vests in 36 successive equal monthly installments, subject to continued service through each such date. 1,791,667 of the shares of our common stock subject to this option were vested as of December 31, 2014.
Maybe this purchase was just one of the 36 successive monthly installments?
Doesn't matter really. Algos seem to like the "news" which really isn't "news".
http://www.sec.gov/Archives/edgar/data/1418091/000156459015002682/twtr-d...
Only retards follow shitter.
So he wiped out $8 billion in marketcap to save $400k on his purchase? Seems legit.