Xinhua Finance Media Limited (NASDAQ: XFML) has been a troubled stock of late. The Chinese news agency has been plagued with problems, scandal, and controversy almost since day one after its IPO.
The company has tried many new initiatives to stabilize the company and to alleviate concerns. Actions announced today may do more than anything else as these were insiders acquiring shares of stock in the company. Below is a brief summary:
- Ms. Bush (CEO) purchased 50,000 ADSs at an average price of $2.25 on 23 June, 2008.
- Mr. Olson (independent director) purchased 100,000 ADSs at an average price of $2.63 on various dates between 27 May, 2008 and 20 June, 2008.
- Mr. Kramer (independent director) purchased 15,000 ADSs at an average price of $2.57 on 12 June, 2008, in addition to the 10,000 ADSs purchased at an average price of $2.20 on 17 March 2008.
- Mr. Green (independent director) purchased 7,600 ADSs at an average price of $2.63 on 16 June, 2008.
- Mr. Springer (independent director) purchased 4,000 ADSs at an average price of $2.57 on 16 June, 2008.
Following these transactions (in ADS’s), Ms. Bush holds 4,649,166 shares; Mr. Olson holds 100,000 shares; Mr. Kramer holds 25,000 shares; Mr. Green holds 7,600; and Mr. Springer holds 4,000 shares. Each of the shares mentioned are ADS’s, which represent two common shares of the company.
These are not exactly the world’s largest insider transactions in history of troubled stocks, but insider buying always trumps insider selling. Shares are indicated up 7% at $2.85 in early pre-market trading.
Jon C. Ogg
June 26, 2008
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