Consequences of backdating stock options

Even more surprising (to some) was that within just 50 trading days, RH had announced that it had already , accounting for a significant portion of the daily volume during that time.

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Instead, with RH these are actual and permanent reductions in share count which are having a very predictable effect on the price of each remaining individual share.

Right now some shorts appear to be taking the view that “if RH was a good short at $30, then it must be an even better short at $90”.

This is how we have gotten from the $40s to the $90s in just 8 weeks. In the past, RH has made very visible use of such events to make announcements which then sent the stock sharply higher.

There are a variety of announcements that Friedman could be expected to make at (or in advance of) this “”.

Within just two days of that award (on May 4, 2017) RH quickly announced a $700 million share buyback to sharply reduce the share float.

Some were surprised at the buyback because RH’s stock price had already been rising towards the highest prices of the year (then closing in on ).Volume: 1.1 million shares Shares of RH are being driven sharply higher as a result of financial engineering being conducted by RH’s CEO Gary Friedman.Throughout this article, please understand that the described reductions in share count have nothing to do with any type of meaningless “reverse split”.Precisely how he achieves this goal is entirely irrelevant.If Friedman is successful, the value of the total awards to him will exceed 0 million.At least million of this will come to him within just the next few months.

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