Well that did not take very long
. A press release was issued Tuesday at approximately 11:24 AM which said “In light of Monday's share price action and comments from several outside shareholders, Pre-Paid Legal Services, Inc. (PPD
) has decided to cancel the previously announced insider transaction. We will not purchase any of the 639,000 shares previously announced. We will continue to purchase treasury shares in the open market and consider additional private block purchases.”
What did they think was going to happen? Management has essentially been scared off and rightfully so. Now what? The annual general meeting should be a donnybrook with 70% of the float in a short position. Corporate governance will most likely collide with shareholder rights all seasoned by a unique mixture of greed and irrationality.
PPD 1-yr chart: