B-Lunist / Re: Settlement is final.
posted on
Apr 17, 2008 03:03PM
This language from the shareholder letter combined with the characterization posted by others here by Hawk & Flowers that the letter was very "carefully" worded, surely seems to me to be indicating fairly emphatically that the settlement numbers have been fully included.
"I will not, in the limited context of this letter, recount all the information contained in our April 9, 2008 earnings release, which fully reflects the financial results of all transactions announced prior to the end of January 2008."
While I'd love to be proven wrong, I don't see ongoing or future installments based on this language.
Also, the trading restrictions that the company imposed, may have been designed to take the heat off of insiders to buy shares in the "post-settlement" environment. Surely, if the case was settled, and the J's were in the bag, investors (myself included) would have been pressuring the insiders to make a statement of support to buy the stock. By restricting themselves this way, they protected themselves from having to buy shares. Conversely, not being able to sell was of little concern considering the small position most insiders hold. Unfortunately, in my opinion, part of the NDA & No-trade restrictions were aimed at protecting the insiders that way. I think they realized the backlash that the results would cause, and felt that they could make a better deal for themselves, and consequently protect their own "dry powder" by creating a situation where they would have to wait to buy, and by buying after the drop, it would allow them to have a greater impact on the shareprice without creating a situation that would have had the perception that their buying would have unduly influenced others to purchase shares.
These are obviously opinions based on the actions and comments they've made, though I think the insertion of the word "fully" in the letter, IMO, rules out further proceeds from the J's. If it turns out there are, I would think that the wording of the letter would leave Goerner & the company open to liability of misleading investors in order to keep the price low.