GameStop Director Shedding Shares

October 13, 2009 -

On the surface, GameStop appears to be doing well, even gathering positive assessments from financial analysts on its prospects for the holidays in a weakened economic market.

But, according to an article on Gamasutra, GameStop Director Leonard Riggio has sold 2.3 million shares of company stock, netting him more than $60 million, and dropping his stake in the company from 6.9 percent to 5.5 percent. Riggio is also founder and board chairman of Barnes & Noble.

From Gamasutra:

"Unless he desperately needs $60 million," it appears that he doesn't think the stock is going to be performing very well, insider trading firm Form4Oracle co-founder Alex Romayev told financial magazine Barron's. "He's got a lot bigger stake in Barnes & Noble. Clearly he thinks selling GameStop is better than selling Barnes & Noble."

Even more interesting was a note at the end of the Gamasutra story:

But Romayev told Barron's that the last time Riggio made a GameStop shares sale not related to options, he divested just in time to avoid a 62 percent loss.

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Comments

Re: GameStop Director Shedding Shares

Maybe he wants to buy Borders?

Re: GameStop Director Shedding Shares

Its only 1.2 or so percent hes selling, I don;t see much of a problem here unelss the stock drops in price in the enxt 6 months.


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Re: GameStop Director Shedding Shares

If the Director of a company sells off $60 million of their own shares, what do you think will happen to the company share price? It won't drop in the next 6 months. It'll drop in the next 6 hours. Which is in fact precisely what's been happening. Riggio sold on Oct. 8 when the price was at a historic high for the past 30 days. It's been dropping ever since.

Re: GameStop Director Shedding Shares

yep. A major share holder selling stock is a very bad sign for most traders and tehy will attempt to ditch it thus lowering the value.

Lets just see if he buys it all back + some for $30 million.

E. Zachary Knight
Oklahoma City Chapter of the ECA
http://www.theeca.com/chapters_oklahoma

Re: GameStop Director Shedding Shares

But Romayev told Barron's that the last time Riggio made a GameStop shares sale not related to options, he divested just in time to avoid a 62 percent loss.

Isn't that the very definition of 'Insider Trading'?

Re: GameStop Director Shedding Shares

It sounds like it. 

Back in the 80's Ray Kassar sold a bunch of his stock right before announcing Atari wasn't on track with Q4 projections right before the videogame crash.  He was investigated but determined to be innocent of insider trading, and he even gave the $$ back.  By that time, however, the damage had been done. 

In either case, if it isn't insider trading, then it's just plain stupid timing.

Re: GameStop Director Shedding Shares

I'm kinda wondering myself why the SEC didn't jump all over that one.  

Re: GameStop Director Shedding Shares

The SEC has never had a very good track record of going after insider trading unless someone famous is involved.  For the most part the 'sexy' factor is just too low.

Re: GameStop Director Shedding Shares

I think the cases of outsiders trading on information from insiders are more frequently prosecuted. It's not that easy to make a insider trading case against an insider. Who can tell when they trade on publicly availabale information as opposed to information peculiarly within their knowledge? 

 
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Papa MidnightIt's not bad so far, but I am honestly not sure what to make of it (or where it's going for that matter)07/28/2014 - 9:44pm
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Sleaker@MP - I hope you didn't suffer a loss of your mental faculties attempting that.07/28/2014 - 3:48pm
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ZenMatthew, the 3DS already has GBA games in the form of the ambassador tittles. And I an just as curious about them not releasing them on there like they did the NES ones. I do like them on the Wii U as well, but seems weird. And where are the N64 games?07/28/2014 - 10:40am
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E. Zachary KnightMatthew, It most likely is. The question is whether Nintendo wants to do it.07/28/2014 - 10:12am
Matthew WilsonI am sure the 3ds im more then powerful enough to emulate a GBA game.07/28/2014 - 9:54am
Sleaker@IanC - while the processor is effectively the same or very similar, the issue is how they setup the peripheral hardware. It would probably require creating some kind of emulation for the 3DS to handle interfacing with the audio and input methods for GBA07/28/2014 - 9:30am
Sleaker@EZK - hmmm, that makes sense. I could have sworn I had played GB/GBC games on it too though (emud of course)07/28/2014 - 9:23am
E. Zachary KnightSleaker, the DS has a built in GBA chipset in the system. That is why it played GBA games. The GBA had a seperate chipset for GB and GBColor games. The DS did not have that GB/GBC chipset and that is why the DS could not play GB and GBC games.07/28/2014 - 7:25am
IanCI dont think Nintendo ever gave reason why GBA games a reason why GBA games aren't on the 3DS eshop. The 3DS uses chips that are backwards compatable with the GBA ob GBA processor, after all.07/28/2014 - 6:46am
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Matthew Wilsonbasically "we do not want to put these games on a system more then 10 people own" just joking07/27/2014 - 8:13pm
MaskedPixelanteSomething, something, the 3DS can't properly emulate GBA games and it was a massive struggle to get the ambassador games running properly.07/27/2014 - 8:06pm
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