Anytime the largest shareholder of a company goes on a buying spree like Barnes and Noble's (BKS) Leonard Riggio did recently, I have to look closer.
Riggio, who bought 100,000 shares both in August and September, bought an additional $11.3 (approximately 420,000 shares) million dollars worth in October. This bring his total stake in the company to 24%. Much like Sear Holding's (SHLD) Eddie Lampert's buying spree this summer, when people intimately involved in the company cannot seem to buy enough shares, you have to be interested.
If you recall Barnes and Noble in August predicted a more optimistic outlook than was previously thought and about this time Riggio began his buying spree. On has to infer from this that the future for BKS may be even rosier that predicted in August. For those hoping for a Barnes and Noble and Borders (BGP) merger, this news ought to put a damper on those expectations. Were a merger or other collaboration to be announced anytime in the near future, Riggio's purchases was be reduced to simple insider trading ahead of the announcement. That does not mean it will not happen, just that it will not happen anytime soon.
I am going to look closer here over the weekend and get back next week..... I am very intrigued though..