Two Plus Two Newer Archives  

Go Back   Two Plus Two Newer Archives > General Poker Discussion > Poker Legislation

Reply
 
Thread Tools Display Modes
  #11  
Old 11-28-2007, 12:19 PM
4_2_it 4_2_it is offline
Senior Member
 
Join Date: Jul 2005
Location: Trying to be the shepherd
Posts: 18,437
Default Re: Party Poker is up to Something ... which D$D has inside scoop on

[ QUOTE ]
If he is acting on privileged information in deciding to buy or sell stock, then he is breaking the law.

[/ QUOTE ]

He just announced that he wasn't going through with one of his planned December sales. Hard to see how he is breaking any law since he is neither buying nor selling shares. It's not illegal to just decide to hold shares AFAIK.

A lot of corporate executives announce December stock sales well in advance so that the markets do not get spooked when they see a executive has sold a block of stock. Most of the time the stock sales are for very legitimate reasons related to personal financial/estate planning.

Without any other information, it's hard to read too much into this singular event.
Reply With Quote
  #12  
Old 11-28-2007, 02:10 PM
Grasshopp3r Grasshopp3r is offline
Senior Member
 
Join Date: Jun 2006
Location: Aurora, CO (suburb of Denver)
Posts: 1,728
Default Re: Party Poker is up to Something ... which D$D has inside scoop on

Well, it certainly moved Party back up to 29 from 25, so it created some wealth for him.
Reply With Quote
  #13  
Old 11-28-2007, 03:29 PM
4_2_it 4_2_it is offline
Senior Member
 
Join Date: Jul 2005
Location: Trying to be the shepherd
Posts: 18,437
Default Re: Party Poker is up to Something ... which D$D has inside scoop on

[ QUOTE ]
Well, it certainly moved Party back up to 29 from 25, so it created some wealth for him.

[/ QUOTE ]

Since he isn't selling, that gain is just on paper. Maybe he expects the stock to rocket up or maybe he doesn't have as big a tax liability as he thought so he has no need to liquidate his holdings. I'm no Party apologist, I'm only saying that this is not that unusual a situation among CEOs and there can be other non-Party related factors behind it.

I guess I am just saying that I would not make an investment decision in a vacuum based on this type of information by itself.
Reply With Quote
  #14  
Old 11-28-2007, 04:13 PM
ThunderEagle ThunderEagle is offline
Senior Member
 
Join Date: Jan 2006
Posts: 498
Default Re: Party Poker is up to Something ... which D$D has inside scoop on

[ QUOTE ]

He just announced that he wasn't going through with one of his planned December sales. Hard to see how he is breaking any law since he is neither buying nor selling shares. It's not illegal to just decide to hold shares AFAIK.


[/ QUOTE ]

If I read the OP correctly, it was a stock option excerise. That means he has the option on X number of stocks at a given price. If it was his plan to excerise those options and then sell them immediately for market price, and all he has done is decide not to sell them right away then he is buying stock.
Reply With Quote
  #15  
Old 11-28-2007, 04:43 PM
4_2_it 4_2_it is offline
Senior Member
 
Join Date: Jul 2005
Location: Trying to be the shepherd
Posts: 18,437
Default Re: Party Poker is up to Something ... which D$D has inside scoop on

[ QUOTE ]
[ QUOTE ]

He just announced that he wasn't going through with one of his planned December sales. Hard to see how he is breaking any law since he is neither buying nor selling shares. It's not illegal to just decide to hold shares AFAIK.


[/ QUOTE ]

If I read the OP correctly, it was a stock option exercise. That means he has the option on X number of stocks at a given price. If it was his plan to exercise those options and then sell them immediately for market price, and all he has done is decide not to sell them right away then he is buying stock.

[/ QUOTE ]

Why would he buy and hold? Easier to just not exercise the option until he is ready to sell. Buying and holding will decrease his cash and create a tax liability that will cost him more cash. Unless the options were expiring, this would be a very -EV thing to do.

Here's all I see on the matter. If you have additional info, post it here and I will revise my thoughts if necessary. If 'taken options' means buy and hold in UK speak then I see what you are saying. I interpreted it as he retains the option to buy xx number of shares in the future at a fixed strike price.

[ QUOTE ]
Rueters -- The world's biggest listed online gaming firm, PartyGaming (PRTY.L: Quote, Profile , Research), said on Monday its chief executive, Mitch Garber, had taken options for 3.5 million shares and reversed previous plans to sell a chunk of stock.

Under his planned sale programme, Garber was to have sold shares between Dec. 19 and Dec. 31. He now holds 8.75 million shares in the firm, more than double the amount he is obliged to hold under his contract.


[/ QUOTE ]
Reply With Quote
  #16  
Old 11-29-2007, 09:53 AM
DeadMoneyDad DeadMoneyDad is offline
Senior Member
 
Join Date: Jul 2007
Posts: 814
Default Re: Party Poker is up to Something ... which D$D has inside scoop on

[ QUOTE ]
[ QUOTE ]

He just announced that he wasn't going through with one of his planned December sales. Hard to see how he is breaking any law since he is neither buying nor selling shares. It's not illegal to just decide to hold shares AFAIK.


[/ QUOTE ]

If I read the OP correctly, it was a stock option excerise. That means he has the option on X number of stocks at a given price. If it was his plan to excerise those options and then sell them immediately for market price, and all he has done is decide not to sell them right away then he is buying stock.

[/ QUOTE ]

OP: "LONDON, Nov 26 (Reuters) - The world's biggest listed online gaming firm, PartyGaming (PRTY.L: Quote, Profile , Research), said on Monday its chief executive, Mitch Garber, had taken options for 3.5 million shares and reversed previous plans to sell a chunk of stock."


This is a pretty strong PR statement by a CEO.

Insiders in most markets have to announce plans to sell or acquire large holdings.

To reverse previous planned sales and to announce having "taken options" is about as bullish as you can get on a stock short of outright open market purchases. It did not say anything about the terms of the options given. Nor did it say the CEO planned to exercise them. This could simply be an indication of a cash flow problem as anything else.

If he had spent 3.5 million or even the 80 million or so to purchase 3.5 million shares as implied in the story that would be different.

In poker terms he's decided not to cash out some chips from the table or "rat hole" them, and he is acting like he is going to make a big bet. He just hasn't done any real betting yet.


D$D
Reply With Quote
  #17  
Old 11-29-2007, 12:16 PM
fnord_too fnord_too is offline
Senior Member
 
Join Date: May 2004
Location: February made me shiver
Posts: 9,200
Default Re: Party Poker is up to Something ... which D$D has inside scoop on

Well, there was a wisp of a rumor that Party was going to be re entering the US market soon (N 82, in one of the AP threads dropped this little bomb shell with an "I'm not going to say anything else so don't even ask" note on the end). No idea what info he was basing that on, but this little tidbit raises my hope slightly (though it is still pretty low).
Reply With Quote
  #18  
Old 11-29-2007, 01:46 PM
Legislurker Legislurker is offline
Senior Member
 
Join Date: May 2007
Posts: 728
Default Re: Party Poker is up to Something ... which D$D has inside scoop on

It could also be a way to push income forward if he has to pay a financial penalty as part of a deal with the DOJ.
Reply With Quote
  #19  
Old 11-29-2007, 03:14 PM
Adebisi Adebisi is offline
Senior Member
 
Join Date: Apr 2006
Posts: 228
Default Re: Party Poker is up to Something ... D$D has no insider scoop on

[ QUOTE ]
Would "Tipper liability" apply to people who spread inside information picked up in the non-public "back room buzz", that other people traded on ?

[/ QUOTE ]


No, they're not considered "insiders".
Reply With Quote
  #20  
Old 11-29-2007, 08:17 PM
Doc T River Doc T River is offline
Senior Member
 
Join Date: Sep 2007
Location: amongst my tomes
Posts: 475
Default Re: Party Poker is up to Something ... D$D has no insider scoop on

It does not matter if he buys, sells, or holds. What matters if those actions (or non-actions) are because of information that he has access to, but the man on the street does not.
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT -4. The time now is 12:58 AM.


Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2021, vBulletin Solutions Inc.