Many top execs receive options and/or shares as part of their salary. In the U.S. they must announce ahead of time of their intent to sell. Lin has done so. That does not mean that he is selling right this minute. The stock may well go higher before he sells. At least now he has the option to sell shares. That's all that has happened so far.
3,600,000 Taiwan shares or 3,600,000 ADR shares?
I believe this is Taiwan shares, which is only equal to 720,000 shares of SPIL. Which is only worth about 5 million US.
I wouldn't see that as a major red flag. Executives usually cash out some once a year or so.
The original article talked about last time he sold 4,000,000 shares in Nov, 2004. Lin said at that time the business outlook was bad while other OSAT CEOs are still bullish. And it turned out Lin was right and the whole OSAT stocks were down quite a bit.
This guy earned high reputation among money managers and analysts. This time he maintains bullish about business but sold shares make people wonder "what is going on".
Thanks, and I agree. Perhaps there will be a press release from the company on this.....of course, the downside of that is someone will always come forward and say it's just sugarcoating....we'll see.
Objectively speaking, I believe this is a red flag. If it were a vice president or director, I wouldn't think twice about it. It would be interesting to know the Chairman's track record when he sells (and buys) and some signals are more significant than others; some tracking services provide this information.
On the other hand, I don't get hung up on insider information like I used to, in that I missed a good portion of the 2003 stock market rally when all of the CNBC talking heads were screaming about all of the insider selling going on. Well, it turns out it meant absolutely nothing, as 2003 was a strong recovery year.
Like anything else, it would have been nice to see a proactive comment from the Chairman's office re the need to diversify, some broader financial need, etc., rather than letting everyone wonder about the prospects for the company, despite the recent commentary following earnings.
A little help here....is this not the reddest of all red flags? I'm not a short, in fact just bought 10,000 shares prior to earnings....I know managment sells shares at all times for all kinds of reasons, but unless this guy's wife has some kind of Emelda Marcos shoe fetish and he needs the money, why would anyone (esp the Pres) sell when prospects seem so strong.....sell now for $25MM or wait until the stock goes to ten and sell for $36MM...duh?????!!! Or does he know something we don't?