In my June 9th post titled, "Semi-Charmed: NSM 'engineers' big gains," which had been posted just hours after National Semiconductor (NSM) announced a pretty robust package of financial engineering (does this industry give member-only seminars in how to do these things?), I had pondered, "Is it mere coincidence that the same industry and its executives that institutionalized the art of "backdating" option grants, have now patented the leverage buyback?" On the conference call that day, CEO, Brian Halla said, "We believe that the leveraged share repurchase program is an effective way to improve the company's capital structure, and it reflects management's confidence in National's robust business model and future growth prospects." Halla had sold a bit over $10-million worth of National Semi on March 28th; and five other insiders apparently felt that the 16-percent jump in NSM's shares following the announced financial engineering package kind of offset however "robust" its "business model" might actually be. From June 11th (2-days after the firm's conference call) thru June 15th, insiders liquidated just over 1-million shares worth just over $29-million. Presumably, some of this stock was likely sold right back to the company via its stock repurchase plan.
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