Is Options Back-Dating Good For Shareholders
According to The Wall Street Journal, Gartmore Small Cap Fund has risen about 30% in the last year, due, in part, in buying shares depressed by the options back-dating scandals. Shares in companies like Foundry Networks (FDRY), Apple (AAPL), and…
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According to The Wall Street Journal, Gartmore Small Cap Fund has risen about 30% in the last year, due, in part, in buying shares depressed by the options back-dating scandals. Shares in companies like Foundry Networks (FDRY), Apple (AAPL), and Take-Two Interactive (TTWO) have jumped up after the initial reaction to announcements that they had options problems.
But, the move its a bit too cute. A number of the company’s stock have not recovered. A Birinyi Associates survey of the 120 companies tied up in the options mess says that most underperformed the major induces.
Good for Gartmore, but not a bright way to screen stocks for good returns.
Douglas A. Mcintyre can be reached at [email protected]. He does not own securities in companies that he writes about.
Contact [email protected] for any questions or corrections.
Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.
His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.
A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.
