Standex International president Dunbar has completed a remarkable transaction: he sold $3.78 million in company stock on Monday, bought the same shares back on Tuesday, and sold them again on Wednesday at a slight loss, all in a bid to demonstrate his commitment to the company's long-term value.
According to a company spokesperson, Dunbar's actions were part of a new executive training program designed to teach top management the importance of patience and market timing. «The president wanted to show that even he can make mistakes, and that's a valuable lesson for all of us,» the spokesperson said. The program, which has been extended to all C-suite executives, requires participants to complete at least three buy-sell cycles per quarter, with the goal of achieving a net loss of no more than 5%.
Dunbar's first sale, executed at market open, was followed by a repurchase at a slightly higher price, and then a final sale at a price that left him with a paper loss of $12,000. «It's a small price to pay for the optics,» Dunbar said in a statement. «I wanted to show that I'm not just in it for the money, but for the thrill of the trade.»
The company's board has reportedly embraced the practice, with several directors now engaging in similar buy-sell-sell cycles. «We're seeing a new culture of financial discipline,» said a board member. «It's not about making money; it's about making a point.»
Analysts have been unable to explain the logic, but shareholders have expressed amusement, with one noting, «If he keeps this up, he'll be the first president to lose money on purpose.»