airtran737
Posts: 3218
Joined: Mon Apr 05, 2004 3:47 am

Northwest Exec Dumps Stock!

Mon Jun 13, 2005 1:25 pm

The title is self explanatory. It seems to me like he has a vision of the future and wants to get his money before NW enters Chapter 11. Link below.

http://www.msnbc.msn.com/id/8195360/

About Gary Wilson

http://www.nwa.com/corpinfo/peopl/board/board.shtml
Nice Trip Report!!! Great Pics, thanks for posting!!!! B747Forever
 
bill142
Posts: 7853
Joined: Wed Aug 04, 2004 1:50 pm

RE: Northwest Exec Dumps Stock!

Mon Jun 13, 2005 1:44 pm

or from a personal investment standpoint something better has come along and the only way to get his cash for his new acqusition is to sell his NW stock. This may not be a precurser to NW entering Chapter 11. You havw to look at other aspects as well.
 
FLAIRPORT
Posts: 3863
Joined: Thu Oct 26, 2000 10:46 am

RE: Northwest Exec Dumps Stock!

Mon Jun 13, 2005 1:45 pm

Didn't Martha get in trouble for doing the same thing?


EDIT: My first post as an "adult"...18 years old woo! (post 2988 overall)

[Edited 2005-06-13 06:46:35]
NEXT FLIGHT: FLL-ATL-HPN on FL
 
airtran737
Posts: 3218
Joined: Mon Apr 05, 2004 3:47 am

RE: Northwest Exec Dumps Stock!

Mon Jun 13, 2005 1:47 pm

Go get yourself a lap dance. Congrats on the big one eight.
Nice Trip Report!!! Great Pics, thanks for posting!!!! B747Forever
 
FriendlySkies
Posts: 3540
Joined: Fri Aug 13, 2004 3:57 pm

RE: Northwest Exec Dumps Stock!

Mon Jun 13, 2005 2:11 pm

Well that probably isn't a good sign...good luck NW, hope they can get through this without Chap 11 (but don't be dumb like DL and avoid it until you have nothing to offer as leverage...).

FLAIRPORT, I just turned 18 (June 1) too...I feel old now for some reason...
 
m404
Posts: 1875
Joined: Tue Nov 25, 2003 4:43 pm

RE: Northwest Exec Dumps Stock!

Mon Jun 13, 2005 2:15 pm

I think it would be a better idea to trace the rate of stock sales each of these men have made throughout their ownership lifetime before jumping to the usual A.net doomsday conclusions.
Less sarcasm and more thought equal better understanding
 
AussieItaliano
Posts: 343
Joined: Sun Jan 30, 2005 12:27 pm

RE: Northwest Exec Dumps Stock!

Mon Jun 13, 2005 4:36 pm

First of all, congrats to those who just turned 18. I was there about 8 years ago.

Regarding NW execs dumping stock, this could pose a legal problem if the stock drops now (I am a lawyer, BTW). Anyone who is on the board of directors would be subject to SEC Rule 16b which imposes strict liability if the stock decreases after they sell it.

That means that they would be subject to a rule that is even more strict than the one Martha Stewart got busted for (which is 10(b)(5)).
Third Runway - LHR, Second Runway - LGW, Build Them Both!!!
 
Tornado82
Posts: 4662
Joined: Thu May 26, 2005 10:19 am

RE: Northwest Exec Dumps Stock!

Mon Jun 13, 2005 11:03 pm

Quoting AussieItaliano (Reply 6):
Anyone who is on the board of directors would be subject to SEC Rule 16b which imposes strict liability if the stock decreases after they sell it.

Then what's the point of having stock? Buy low, sell high. If he sold it due to privledged info (i.e. looming Ch 11) its one thing... but if he sold it because the airline industry as a whole is crap and he wants to cut his losses before they get worse... more power to him!
 
PSU.DTW.SCE
Posts: 6091
Joined: Mon Jan 28, 2002 11:45 am

RE: Northwest Exec Dumps Stock!

Mon Jun 13, 2005 11:38 pm

We've seen these posts time and time again, speculating on the Ch. 11's.

Just for the record, airline stocks are some of the worst to make money on. They used to be fairly constant, but there are many, many others that have a much better rate of return.
 
wobbles
Posts: 148
Joined: Fri Feb 04, 2005 10:40 am

RE: Northwest Exec Dumps Stock!

Mon Jun 13, 2005 11:53 pm

If it's Wilson, don't you mean: NW Exec. dumps pot?
 
Indy
Posts: 3898
Joined: Thu Jan 20, 2005 1:37 pm

RE: Northwest Exec Dumps Stock!

Mon Jun 13, 2005 11:55 pm

Quoting PSU.DTW.SCE (Reply 8):

Just for the record, airline stocks are some of the worst to make money on. They used to be fairly constant, but there are many, many others that have a much better rate of return.

I'd have to agree. You'd be better off investing in some new fad exercise equipment program or the Carlton Sheets realestate kit  Smile
Indy = Indianapolis and not Independence Air
 
wunala
Posts: 898
Joined: Tue Mar 22, 2005 7:17 am

RE: Northwest Exec Dumps Stock!

Tue Jun 14, 2005 12:04 am

This is not an indication that NW is about to hit Chap 11. He probably needs the money for some other reason, like to buy another house, or diversify his holdings a bit. I've sold lots of shares to get cash for various reasons. Maybe not the same scale, but I have diversted from companies, not because I wanted to, but my money was needed elsewhere.
 
ssides
Posts: 3248
Joined: Fri Feb 09, 2001 12:57 am

RE: Northwest Exec Dumps Stock!

Tue Jun 14, 2005 12:17 am

Quoting AussieItaliano (Reply 6):
Anyone who is on the board of directors would be subject to SEC Rule 16b which imposes strict liability if the stock decreases after they sell it.

I am an attorney as well, and I know of no such "strict liability" standard, assuming the stock has been held for 6 months and the director in question filed the appropriate forms and notices with the SEC.

Is there another basis for such liability?
"Lose" is not spelled with two o's!!!!
 
Indy
Posts: 3898
Joined: Thu Jan 20, 2005 1:37 pm

RE: Northwest Exec Dumps Stock!

Tue Jun 14, 2005 1:54 am

Quoting Ssides (Reply 12):
I am an attorney as well, and I know of no such "strict liability" standard, assuming the stock has been held for 6 months and the director in question filed the appropriate forms and notices with the SEC.

It has been a while since I have worked with this kind of thing but I believe he is talking about insider trading rules. He may be refering to the seller having inside knowledge that the stock was going to tank so the seller unloads just in time. IF a person of power in a company unloads the stock and shortly after the price crashes the first assumption is that the person had inside knowledge that the general public was not privileged to and that is where the liability comes in. Correct me if I am wrong.
Indy = Indianapolis and not Independence Air
 
aa777jr
Posts: 2269
Joined: Tue Feb 17, 2004 12:03 pm

RE: Northwest Exec Dumps Stock!

Tue Jun 14, 2005 1:58 am

This guy is dating Martha Stewart.

Losses for all last year total $800+ mil and this 1Q are already at $450 mil!

Scary stuff for NW. They are a great airline, wish the best for them.

Regards.
A liberal is a man who is right most of the time, but he's right too soon.
 
luv2fly
Posts: 11056
Joined: Tue May 13, 2003 2:57 am

RE: Northwest Exec Dumps Stock!

Tue Jun 14, 2005 2:06 am

Quoting Ssides (Reply 12):
I am an attorney as well, and I know of no such "strict liability" standard, assuming the stock has been held for 6 months and the director in question filed the appropriate forms and notices with the SEC.

He did all is above board!

Quoting Aa777jr (Reply 14):
This guy is dating Martha Stewart.

Losses for all last year total $800+ mil and this 1Q are already at $450 mil!

Scary stuff for NW. They are a great airline, wish the best for them.

Regards.

This from an attorney? Scary stuff!
You can cut the irony with a knife
 
Tango-Bravo
Posts: 2887
Joined: Sun Jun 17, 2001 1:04 am

RE: Northwest Exec Dumps Stock!

Tue Jun 14, 2005 2:13 am

Reply To: Northwest Exec Dumps Stock!

Put any spin on it you choose, but at the end of the day it sure has the sound of the proverbial rat scurrying to abandon the ship it innately senses to be sinking.
 
DAYflyer
Posts: 3546
Joined: Wed Sep 08, 2004 9:35 pm

RE: Northwest Exec Dumps Stock!

Tue Jun 14, 2005 2:33 am

Quoting PSU.DTW.SCE (Reply 8):
Just for the record, airline stocks are some of the worst to make money on. They used to be fairly constant, but there are many, many others that have a much better rate of return.

Try Southwest...116 qaurters of consecutive profit.
One Nation Under God
 
slider
Posts: 6805
Joined: Wed Feb 25, 2004 11:42 pm

RE: Northwest Exec Dumps Stock!

Tue Jun 14, 2005 2:36 am

Hey, what Wilson did made perfect sense. Gives him some dough in his pocket, protects his interests in the event of a BK filing and/or massive labor unrest which makes the stock questionable at best.

He's no dummy.

Some of you proferring these conspiracy theories need to relax--it's totally natural for him to do what he did.
 
burnsie28
Posts: 5027
Joined: Mon Aug 02, 2004 1:49 am

RE: Northwest Exec Dumps Stock!

Tue Jun 14, 2005 2:43 am

Quoting DAYflyer (Reply 17):
Quoting PSU.DTW.SCE (Reply 8):
Just for the record, airline stocks are some of the worst to make money on. They used to be fairly constant, but there are many, many others that have a much better rate of return.

Try Southwest...116 qaurters of consecutive profit.

And even their stock is not worth very much anymore.
 
AussieItaliano
Posts: 343
Joined: Sun Jan 30, 2005 12:27 pm

RE: Northwest Exec Dumps Stock!

Tue Jun 14, 2005 2:49 am

Quoting Ssides (Reply 12):
I am an attorney as well, and I know of no such "strict liability" standard, assuming the stock has been held for 6 months and the director in question filed the appropriate forms and notices with the SEC.

Is there another basis for such liability?

No, I was referring to the basis you described (Rule 16b). Purchase + sale within six months = strict liability.

I think (but don't hold me to it) that I recently saw that NW board members received a good portion of their compensation in securities.
Third Runway - LHR, Second Runway - LGW, Build Them Both!!!
 
Tango-Bravo
Posts: 2887
Joined: Sun Jun 17, 2001 1:04 am

RE: Northwest Exec Dumps Stock!

Tue Jun 14, 2005 5:00 am

Quoting Burnsie28 (Reply 19):
Try Southwest...116 qaurters of consecutive profit.

And even their stock is not worth very much anymore.

Neither has it "tanked" anything even remotely like the stocks of the legacies. In view of the fact that Southwest has a market capitalization now valued at more than all of the legacies combined (as of April 2005 according to Forbes magazine), where does that leave the stock values of the legacies?
 
ssides
Posts: 3248
Joined: Fri Feb 09, 2001 12:57 am

RE: Northwest Exec Dumps Stock!

Tue Jun 14, 2005 6:47 am

Quoting AussieItaliano (Reply 20):
No, I was referring to the basis you described (Rule 16b). Purchase + sale within six months = strict liability.

I think (but don't hold me to it) that I recently saw that NW board members received a good portion of their compensation in securities.

OK, I understand. I knew about the 6 month purchase-and-sale window under 16(b), but wasn't aware it was a strict liability standard.

I would assume his stock compensation was deferred so that he could fall within the 6-month windows.
"Lose" is not spelled with two o's!!!!

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