As an employee of the company with intimate knowledge of its financials, typically he would be in a black out period at this time of the quarter. This applies not only to company officers but also anyone with knowledge of the financials (e.g., those in accounting, treasury, SEC reporting, etc.). Therefore, I don't believe he had the capability to reverse any orders in this period of time.
Kirby J Scott Sells 91.1K Shares and 3 Insider Sales to Follow
- Thread starter usa1
- Start date
As an employee of the company with intimate knowledge of its financials, typically he would be in a black out period at this time of the quarter. This applies not only to company officers but also anyone with knowledge of the financials (e.g., those in accounting, treasury, SEC reporting, etc.). Therefore, I don't believe he had the capability to reverse any orders in this period of time.
Jester
Veteran
This is my understand according to the SEC guidance on the matter, as the question being posed:
"After the written trading plan described in Question 120.11 has been in effect for several months, the person terminates the selling plan by calling the broker and canceling the limit order... Standing alone, does the act of terminating a plan while aware of material nonpublic information, and thereby not engaging in the planned securities transaction, result in liability under Section 10(B) and Rule 10b-5?"
No. Section 10(B) and Rule 10b-5 apply ‘in connection with the purchase or sale of any security.’ Thus, a purchase or sale of a security must be present for liability to attach. See Blue Chip Stamps v. Manor Drug Stores, 421 U.S. 723 (1975)." (Emphasis added.)
Furthermore,
"Section 10(B) and Rule 10b-5 apply to any fraudulent conduct ‘in connection with the purchase or sale of any security.’ The ‘in connection with’ requirement is satisfied when a fraud ‘coincides’ with a securities transaction. See, e.g., SEC v. Zandford, 535 U.S. 813 (2002) and Merrill Lynch, Pierce, Fenner & Smith, Inc., v. Dabit, 547 U.S. 71 (2006). [Mar. 25, 2009]"
http://www.gibsondunn.com/Publications/Pages/SECStaffIssuesInterpretiveGuidance-10B5-1Plans.aspx
Basically, no security sale, no violation of Section 10(B), and no restriction in canceling a trade, at least, as how I read it.
A320 Driver
Veteran
- Aug 24, 2002
- 3,358
- 2,319
I got around $240 for my stock options. Didn't exactly pay for college tuition...huh?
Driver...
Driver...
firedougparker
Member
Kirby would know best if a merger is going to happen or not. Looks like he voted with his wallet!
Kirby had an automatic sale arranged if the stock hit $15/sh, so on January 8, he exercised options for 114,862 shares at a strike price of $3.10/sh. At the same time, he sold 91,123 shares @ $15/sh and disposed of another 23,739 shares in a non-sale transaction (gave them to charity or family member, etc).
This had nothing to do with what he knows about a potential merger. He set an automatic sale if the price hit $15/sh and that happened.
http://finance.yahoo.com/q/it?s=LCC+Insider+Transactions
http://www.bloomberg.com/news/2013-01-11/us-airways-kirby-gains-1-37-million-after-stock-gain.html?cmpid=yhoo
This had nothing to do with what he knows about a potential merger. He set an automatic sale if the price hit $15/sh and that happened.
http://finance.yahoo.com/q/it?s=LCC+Insider+Transactions
http://www.bloomberg.com/news/2013-01-11/us-airways-kirby-gains-1-37-million-after-stock-gain.html?cmpid=yhoo
Don't know, but according to the linked article, US Airways policy prohibits these plans from being changed once established:
So three anonymous employees said that US rules prevent employees from changing the plans once they are created. Some posters in this thread have posted that federal securities laws don't prohibit changes, but employers of executives can certainly establish more restrictive rules if they choose.
firedougparker
Member
It does have something to do with a merger, in that he and Parker have been pushing hard for a merger for the last year, which has driven up the price of LCC to more than double what it was. All the merger speculation frenzy has caused a bubble in our stock, which execs are now profiting from.
signals
Veteran
Seems like the stock is having a heart attack as it drops and rises at alarming rates.
Basically, the stock is staying within the $15 range. Maybe it was a good move on his part, unless it was purposely done to manipulte the stock price.
Basically, the stock is staying within the $15 range. Maybe it was a good move on his part, unless it was purposely done to manipulte the stock price.
usfliboi
Veteran
- Aug 20, 2002
- 2,070
- 270
You really need to brush up on the facts here... Im not seeing the drop you refer to either... Alarming rate?
signals
Veteran
Read it again boitwister! Drop and RISE is what I said. Small change maybe, but it depends on how much you have riding on the stock...like Kirby.
Continue to entertain me. Lets see your next suitable TWIST of my comments.
If this merger doesn't happen, where do you think the stock will be one day after?
$7, $8?
signals
Veteran
wings396
Veteran
- Aug 20, 2002
- 3,672
- 1,122
Higher than AA's will be....
Similar threads
Latest posts
-
-
-
-
-
-
Sun Country Airlines after first NMB Mediated session- Latest: CorvetteMan