Marker Therapeutics Inc (MRKR)

[attilathehunt]

something to contemplate....
8. Resignations by high-level management or board members.

In a vacuum, the resignation of key members of a company can be seen as a bad thing. It begs questions like: If the company is doing well, why are they leaving? Where are they going? What’s wrong with the business?

But, if you believe that your company is planning to merge, or has secretly already agreed to merge, and the announcement might not be for several months, then the resignation of key employees can be seen as bullish.

This is true if you think the employee who resigned would know about the merger, and might also be redundant in the new company.

When companies merge there are cost savings. Supply chains are merged, technology is shared, and many employees are let go. You don’t need two chief financial officers, or two chief medical officers. There will be some redundancy.

These people might have already been informed that their job will be eliminated, or they might have figured it out by themselves. Not wanting to be unemployed for any amount of time, they exit prematurely.

If they’re a high-level insider, they probably own stock in the company. Check out the insider transactions. If they held their stock, but left the company…that can be a major tell.

Would you keep your stock if your company forced you out for “incompetence?” Probably not.

But if you knew a buyout was coming, then absolutely you’d hold your stock. It’d be foolish to sell otherwise.