This is a 2nd purchase by the same insider!
SEC Form 4 records show that the same director, Roger Sippl, had also earlier bought 10,000 shares in the open market at an average price $36.50. With his most recent purchase of yesterday, he now holds 40,000 shares of SWI.
I guess he is sure and determined, and has averaged down his earlier $36.50 buy with yesterday's purchase at $32.50
Roger Sippl holds the following positions at Solarwinds, Inc:
1. Director, Member of Audit Committee and
2. Member of Compensation Committee
I bought 800 shares @32.10 on the back of this insider's persistent determination.
11/14/2013 16:34:00 11/12/2013 Purchase SolarWinds, Inc. SWI SIPPL ROGER J Director 10,000 $32.50 $325,000 Direct
Sentiment: Strong Buy
I think i'll just avoid it alltogether, i've sold naked puts before but with the small float too risky for my blood. I'd rather go throw a couple grand down on the roulette wheel in vegas.
Not a good strategy if you're goal is to make money. I've been selling puts since its crash months back and that has been paying quite handsomely. If you blhad been buying puts over that period you have lost all of that. This stock cratered, has found a bottom, and is now rebuilding. Just go long stock or sell out of money puts and if you get put stock it'll be a bunch lower than it is now.
On any gaps up that is, it has worked in the past. BOTTOM LINE: these guys have to get new sales growth above much higher than 5% to justify the high price to sales of almost 10X 5% is great if your doing a billion in sales each quarter but not for 90mm
Lots of smoke and mirrors here waiting for some real resumption of growth.
I use solarwinds product and renewed after letting it lapse for a year, you don't get product updates but the software still works. They did a big push for renewals and were discounting bigtime 30-40%. the federal sales thing sounds like a big excuse as gov't was only shutdown for 16 days and the quarter ended mid sept.