Bailing out? Microsoft Xbox Executive sells company stock as red ring problem continues

It could be a sign, or it could just be a badly-timed business call – but it’s definitely disconcerting, as researchers and analysts have just uncovered the fact that Microsoft Xbox Executive Robbie Bach has sold US$ 6.2 million worth of company stock at around the same time the red ring problem really went overboard. If you remember, it was also at this time that Microsoft put into motion their plan to take care of those red rings, with the company taking the inevitable brunt of it.

While this may seem cause for worry, it certainly doesn’t look like it. For one, a review with the Securities and Exchanges Commission reveal that Robbie Back sold that much shares in the time period that began on May 2 and ended at the point where Microsoft announced the plan to take better care of those red-ringed consoles. So that means it’s not one of those impulse sales where the shareholder dramatically calls up his or her broker and says somberly: “Sell everything.” No, it was gradual.

Another thing that points to the latter is that Microsoft’s shares neither rose or fell significantly after the announcement – in fact, it barely moved at all. And with the company’s spokesman himself, Eric Hollreiser, saying that Robbie Bach’s trading is in no way related to the announcement and that he (Robbie) still has a large stake in the company and confident about Microsoft’s success, there’s probably no real need to worry.

For those of us still jittery about this bit of news, though, here’s Ben Silverman, director of Indie Research, to tell us about the ways of a high-stakes shareholder:

It doesn’t necessarily mean [insiders] think that there will be a bad event; it could just be financial planning. But sometimes it just looks bad that an insider has sold stock. I’d give [Bach] the benefit of the doubt here, especially because the stock didn’t move very much.

Well, there you have it. And it’s not really a bad thing, Microsoft taking care of their customers at their own cost – it just goes to show that they want their customers to get the best service, right? Updates as we get them, and you can read the entire article with all the data on the read link below.

Thanks to Quixand for the tip!

It could be a sign, or it could just be a badly-timed business call – but it’s definitely disconcerting, as researchers and analysts have just uncovered the fact that Microsoft Xbox Executive Robbie Bach has sold US$ 6.2 million worth of company stock at around the same time the red ring problem really went overboard. If you remember, it was also at this time that Microsoft put into motion their plan to take care of those red rings, with the company taking the inevitable brunt of it.

While this may seem cause for worry, it certainly doesn’t look like it. For one, a review with the Securities and Exchanges Commission reveal that Robbie Back sold that much shares in the time period that began on May 2 and ended at the point where Microsoft announced the plan to take better care of those red-ringed consoles. So that means it’s not one of those impulse sales where the shareholder dramatically calls up his or her broker and says somberly: “Sell everything.” No, it was gradual.

Another thing that points to the latter is that Microsoft’s shares neither rose or fell significantly after the announcement – in fact, it barely moved at all. And with the company’s spokesman himself, Eric Hollreiser, saying that Robbie Bach’s trading is in no way related to the announcement and that he (Robbie) still has a large stake in the company and confident about Microsoft’s success, there’s probably no real need to worry.

For those of us still jittery about this bit of news, though, here’s Ben Silverman, director of Indie Research, to tell us about the ways of a high-stakes shareholder:

It doesn’t necessarily mean [insiders] think that there will be a bad event; it could just be financial planning. But sometimes it just looks bad that an insider has sold stock. I’d give [Bach] the benefit of the doubt here, especially because the stock didn’t move very much.

Well, there you have it. And it’s not really a bad thing, Microsoft taking care of their customers at their own cost – it just goes to show that they want their customers to get the best service, right? Updates as we get them, and you can read the entire article with all the data on the read link below.

Thanks to Quixand for the tip!