Replies to post #121691 on Biotech Values

[BTH]

I own a small-cap tech stock that did this.

The scumbags (executives) bought back about 5 million shares. Most of it was CEO and Executive options that were going to expire (and the stock was well above the strike price). So, they had the company buyout the options from them (so they wouldn't have to put up their own money and flip the stock to make it look like they were sellers), instead of exercising them and diluting the stock (they just had the company do it for them on the books, and I believe, just made money on the difference between the strike and the at-market price the company bought out the options----free money, no risk to them at all). After all was said and done, the only thing they prevented was all the options that were coming due, from going into the public float. So, they effectively bought back nothing and it was all net-net.

Yet, Yahoo Message Boards loved it. They thought it was like Intel buying back $2 billion worth of stock.