The truth hurts when it doesn't fit a story... We have to go back 5 years before we can find a single higher trade then when Shaun Irvine took over this mess and brought in a company and announced it...
5 years! I guess I buy stocks because I want to sell them at a higher price!
Mr. Irvine did not mislead any shareholders, in fact the opposite - he fully disclosed the terms of the transaction and the nature of the transaction. For this reason he has been crucified by a few...Perhaps he shouldn't have told anyone what he was doing?
The last time I checked CEO's don't steal things by paying for them... The shares of stock that people buy in the market are feely traded.... we can all buy and sell at will.... The shares that Irvine bought are restricted, and will be for a very long time until at minimum he catches the filings current and then waits at least an additional 6 months. Even 6 months is very unlikely and when those 6 months come up he is restricted on how and what he could sell if he wanted to. So to compare an open market purchase to an extremely different situation is an improper way to value those shares. Yes shares are purchased at significant discounts all the time, every day, all day. 50% discount, 90% discounts... all day long depending on the situation....
$50,000 in stock in a company that trades about $100 a day in liquidity... Even IF they were able to be sold, it would take approximately 2 years if he sold Every single share of the daily volume......Certainly we can all imagine what would happen if he did that....If it was a simple buy the shares and hold them for a while and sell them I would agree with you, but that is certainly not the case...
Someone will respond with some statement like, "Hey but they could be worth pennies and he would make a lot of money!" Perhaps they could be , but they are not and were not. I would recommend watching The Shark Tank to see how things work in the real investment world.... You buy based on what the current value is today, which in this case came with an extreme amount of work and time to go with it.... - or he is expected to work for free for the next year as well?
