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Novadigm, Inc. (NVDM) Message Board

  • eyeod1 eyeod1 Jun 26, 2001 11:01 PM Flag

    Lots of insider selling lately

    Whats going on here? The insiders are dumping their stocks(check the list) I dont like the fact that the chief financial officer sold some shares on June 1....however, most of the sales are in small amounts....i am going to hold this one cautiously
    Eye od 1

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    • A few comments:

      As to insider selling - Joseph Fitzgerald owns 1.4million and sold 12,000 shares; Robert Anderson sold 13,800 of his 623,000 shares; Kent sold something like 50,000 of his 356,000 shares. Their sales don't even put a dent in their holdings!!! Think about it.

      As to the comment re: MM's running the stock on little volume. If you know NVDM you know it doesn't trade much. However, someone (not MM's) is buying. Larger recent trades as follows: 6/11 - 20,000; 6/14 - 25,000; 6/18 - 35,000; 6/22 - 30,000. Still think it's the MM's running the stock!!!!

      As to why the stock might be moving up - How about a very good last qtr; how about the positive comments re: HWP relationship working very well; how about affiliation with EDS; how about Japanese language support in Radia Software (very recent announcement); how about new outside director on board; how about new president...and that's just a brief summary...if you've been following NVDM's progress you should know that things are kicking in...DAH, WHY IS THIS STOCK MOVING?

      Any guess as to how this qtr is shaping up? My guess is probably not too bad! I wouldn't want to be short pending earnings.

      Good Luck...

      • 2 Replies to shuuuut
      • One thing to keep in mind as you look at the large holdings of the management team - the option plan currently in place has given them options with a exercise price equal to 85% of the share price on date of issue. This is highly unusual, and amounts to a transfer of wealth from shareholder to management team. Most companies make the exercise price equal to the trading price on date of issue, only rewarding a positive management performance. Albion seem to think that anything less than a 15% decline in shareholder value merits a reward. Let the company know if you would prefer a more traditional plan to be in place.

      • Thanks for your input....I bought a few hundred shares a few months ago on a hunch from a positive comment made last year by a patient who was a VP at Advest.
        This little stock has moved quietly from 7-11 in just a few months...I like their business model and they continue to be very strong in a very weak nasdaq tech market. Changing from Hold to buy.
        eye od 1