when all of the Athena insiders dump their shares later this month this stock will be cut in half... not to mention the signal insiders will be sending to the street as they make a rush to get out of this overpriced billing company. I think the lock out date mentioned in the Boston Globe today was March 22nd so things could get ugly very quickly as the insiders try to cash in before this thing falls apart.
You could very well be right. I am not a cheerleader and if things work out the way I expect, I may not even be holding any shares by the end of March. If you are shorting this, I personally think March 21st would be the day to start. I just think in the current bear market, all sell-offs have been overdone and the good, stable companies will rebound within a week or two. (By rebound I mean pop up 10-20% in a short period of time.) The dirt stocks will be ridden into the ground. ATHN is not among them. But in short, I wouldn't be amazed if they took another 10-15% hit the week the lockout ends. I just think they will be green leading up to it. In my own opinion, I think the lockout will have little to no effect though.
A private company moving along issues stock options to employees (insiders) and investors (VC's, banks) at a determined value at a point in time. I'd venture to say most if not all of those 2 million shares were granted at $3-$5 on average, if not less. (READ: GREED IS GOOD) Then they go public and the price skyrockets beyond the option price. When a smart investor has a 600-700% gain, they take it! (remind you, we are talking hundreds of thousands, millions in some specific cases)
The only way anyone will know is after March 22nd. My bet is hedged on ALOT of happy investor with FULL coffers. That will be exciting to see!
One insider says to another "Hey Frank, let's sell our shares now that they've taken a 35% hit in the last week!" Frank responds "That's a great idea John."
What planet are you from?
P.S. I am well aware ATHN is not on the Dow however it (meaning the Dow) is a good measure of the optimism or doubt in the markets. (If you are down on Wal-Mart and the rest of the big names, why would you go out on a limb with smaller companies?)
WOW!! Theoretically, if you worked at Athena, would you be conspiring with your co-workers to dump all your shares at once? Again WOW!! You are a bright one. You think this hasn't been discussed by the company? Is this something new and startling to them?
ATHN has an active turnover rate. I'd go as far to say there are more former employees with options to dump than current employees (excluding mgmt) Company can discuss all they want, formers employees and VC's will dump this to collect their payoff!!