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The Tweetsucker Proxy: Did Twitter's CEO Crash The Company To Buy More On The Cheap?

Back on July 28, following Twitter's second quarter earnings release which beat across the board (sending the stock surging above $40) just before Jack Dorsey came on the call with some of the most disheartening guidance ever revealed for a social media company (sending the stock crashing), which resulted in the lowest TWTR stock price since the IPO, we had one question: was Twitter management getting its conference call "tips" from the Coen brothers, and particularly their 1994 masterpiece, the Hudsucker Proxy...

Is TWTR management pulling a Hudsucker Proxy?

— zerohedge (@zerohedge)

... in which the board of a public company desperately tries to crash their own stock so they can buy it on the cheap?

Today we got the first answer, and it was affirmative. In a Form 4 filed earlier today, we found out that a crash in the stock is just what founder and interim CEO Jack Dorsey was waiting for before buying another 31,627 shares on Friday for a price of just $27.67.

After Friday's purchase, Dorsey now owns a total of 21,856,513 total shares, or about 3.3% of the total.

But, what is more notable, is that at $27, Dorsey could buy 50% more stock for a given amount of cash, than he would buy had TWTR remained at the $40 price level where it was when he started discussing TWTR's growth potential on July 28.

So, as TWTR actively pursues its next CEO, we wonder: just what is the likelihood it will be Norville Barnes. "You know, Twitter for kids."