The author posted a question in Business, Finance
Our company started buying up its stock at crazy prices, 100 times more than it was one week ago! What should I do? and got a better answer
Response from
There are no nuances here, no options or assumptions. I can tell you with full responsibility - your company has a serious tail. This is done only in the case of a red level threat of a takeover by force by increasing or concentrating a large block of shares in one center, buying them up from employees, physical persons and depositories, offering prices 10-15 times higher than the market prices, to be sure. If the organization manages to recognize such an attack in time, then the management begins to buy up their own shares at prices much higher than those offered by paper raiders.Apparently, you have a professional management or someone made a mistake. Sell the stake back to the management is the right thing to do, and find out if I'm right. Good luck?
There are no nuances here, no options and assumptions. I can tell you with full responsibility - your company has a serious tail. This is done only in the case of a red level threat of a forcible takeover by increasing or concentrating a large block of shares in one center by buying them up from employees of individuals and depositories offering prices 10-15 times higher than the market prices to be sure. If the organization manages to detect such an attack in time, the management begins to buy up their own shares at prices much higher than those offered by paper raiders. apparently you have a professional management or someone made a mistake. Sell the stake back to the management - it will be the right decision and find out if I am right. Good luck.
Sell it of course. What's in it for your miser.
It is a good situation and where the money to buy back shares comes from, perhaps the company's profits multiplied and they decided to buy back their own shares, perhaps there is another way for the company to develop. and what percentage of the shares do you have? better keep it for a reason, oh not for a reason.
Sell. The enlargement of the stake will go on without you, but if you hold on, no one will ever need your shares.
We have to buy, too! It is urgent! That means your company will soon be in business!
Try to find out the purpose of buying. There are just a lot of nuances to consider. Without some information, it's hard to give sound advice.
They will gain a controlling interest and stop buying and the price will fall back.
If the buying up has just started, it will go up even more Advice: sell piecemeal.