Unloading a vast amount of your own company's stock is never a good sign. Even if said company is doing extraordinarily well, people will automatically conclude something's wrong. Maybe the GameStop executive justed needed some cash, or probably his company is facing a serious downturn and being human, he wanted to lose not one dime, we agree.
According to a report from Barron's via Gamasutra, Leonard Riggio sold 2.3 million shares of GameStop for $60.2 million. The report says this could be a sign of impending bad news for the retailer by drawing comparisons to a previous stock unloading by Riggio, just before a big drop in the company's value.
To be fair, Leonard Riggio still owns 9.1 million shares of GamesStop, so as I stated, the man probably just needed some cash. Still, one has to wonder what's really going on behind close doors when the game retailer's board meet to discuss projections, sales, decline, strategies etc. Could it be GameStop's not doing as grand as the masses thought? We'll have to wait and see.
10/14/09 Ernice Gilbert
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