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.

Posted in

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.


Until lobbying is a hanging offense I choose anarchy! Stop supporting big media and furthering the criminalization of consumers!! http://zippydsmlee.wordpress.com/


Copyright infringement is nothing more than civil disobedience to a bad set of laws. Let's renegotiate them.

---

http://zippydsm.deviantart.com/

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? 

 
Forgot your password?
Username :
Password :

Poll

Who's responsible for crappy Netflix performance on Verizon?:

Shout box

You're not permitted to post shouts.
Sleaker@MP - Looked up hitbox, thanks.07/24/2014 - 9:40pm
Matthew WilsonI agree, but to me given other known alternatives google seems to the the best option.07/24/2014 - 6:30pm
Andrew EisenTo be clear, I have no problem with Google buying it, I'm just concerned it will make a slew of objectively, quantifiably bad changes to Twitch just as it's done with YouTube over the years.07/24/2014 - 6:28pm
Matthew WilsonI doubt yahoo has the resources to pull it off, and I not just talking about money.07/24/2014 - 6:15pm
SleakerI wouldn't have minded a Yahoo purchase, probably would have been a better deal than Tumblr seeing as they paid the same for it...07/24/2014 - 6:13pm
MaskedPixelanteIt's the golden age of Hitbox, I guess.07/24/2014 - 6:08pm
Matthew Wilsonagain twitch was going to get bought. It was just who was going to buy it . Twitch was not even being able to handle the demand, so hey needed a company with allot of infrastructure to help them. I can understand why you would not want Google to buy it .07/24/2014 - 5:49pm
Andrew Eisen"Google is better than MS or Amazon" Wow. Google, as I mentioned earlier, progressively makes almost everything worse and yet there are still two lesser options. Again, wow!07/24/2014 - 5:43pm
Andrew EisenI don't know. MS, in my experience, is about 50/50 on its products. It's either fine or it's unusable crap. Amazon, well... I've never had a problem buying anything from them but I don't use any of their products or services so I couldn't really say.07/24/2014 - 5:42pm
Matthew WilsonGoogle is better than MS or Amazon.07/24/2014 - 5:33pm
Sleaker@AE - I've never seen youtube as a great portal to interact with people from a comment perspective. like ever. The whole interface doesn't really promote that.07/24/2014 - 5:28pm
Andrew EisenNor I. From a content producer's perspective, almost every change Google implements makes the service more cumbersome to use. It's why I set up a Facebook fan page in the first place; it was becoming too difficult to connect with my viewers on YouTube.07/24/2014 - 4:50pm
Sleakerwonder if anyone is going to try and compete with google, I'm not a huge fan of the way they manage their video services.07/24/2014 - 4:41pm
Andrew EisenIt happened. Google bought Twitch. http://venturebeat.com/2014/07/24/googles-1b-purchase-of-twitch-confirmed-joins-youtube-for-new-video-empire/07/24/2014 - 4:28pm
MaskedPixelanteI hope Nintendo actually follows through with the DS Virtual Console, that sounds like it could be cool.07/24/2014 - 2:15pm
james_fudgePeople don't deny it persay, they bristle at the idea that it's a "problem" that nneds to be "fixed."07/24/2014 - 2:15pm
Papa MidnightRacism and Misogny are heavily prevalent in the gaming and online arena. Getting people to actually admit that, however...07/24/2014 - 11:42am
Papa MidnightThat very thing is somthing that anyone who has been subjected to racial-based targeting online could actually state that they've experienced.07/24/2014 - 11:41am
Papa MidnightPerfect example: "I have yet to talk to a man who has had to call a police officer due to a stalker, only to be told nothing can be done until they are physically assaulted."07/24/2014 - 11:40am
Papa MidnightNot that said communities are mutually exclusive. Even the very first comment on that last article equates women in the gaming industry with being the n-word. Despicable, aetestable, and (sadly enough) this is not an uncommon presence in either community.07/24/2014 - 11:35am
 

Be Heard - Contact Your Politician