Mitch is a smart man, and managed to sell about 25% of his holdings before this financing was announced. Its worth noting what happened last time IMGN did same type of financing in May 2010. Stock was down 20% by 3 trading days later and still had not recovered 3 months afterwards to pre-financing levels.
If you were that flush with crazy money wouldn't you be tempted to spend it all on hookers and blow? Or maybe he will just put the cash in a modest mutual fund to grow it a bit more. I wish I had decisions like that to make. I would probably buy a bunch of cedar chips, a gold plated exercise wheel, and and have a Chihuly water bottle custom made for my habitat. And maybe one of those great big hamster exercise balls I could roll around the place in.
Never met a rich man who didnt want more, the more I make the more I feel I just need a little more. When I had nothing I thoght how wonderful it would b to have 10k saved, when I hd 10k I thought how wonderful to have 20k
If you will read the footnotes to the Form 4 you will see:
"The transactions reported in this Form 4 were effected pursuant to a 10b5-1 trading plan executed by the reporting person on February 10, 2011"
Thus, Mitch made the decision to sell long before the share price took off.
Let's see 110K shares x $13 a share is about $1 million after taxes. For me, that would buy me a nice house, and a couple of very nice rides to put in the garage. And I still would have 400K shares still left to sell later on?
When exactly should an ex-CEO take his profits. Don't forget as a company officer he likely made some nice coin just in salary and other deferred compensation. Also, as an ex-CEO he is still subject to trading on any insider information, but since he is an ex-CEO why would he have access to critical informaiton any longer? He is doing the diligent thing and diversifying out of a huge position in a single stock. Nothing more. You would do the same, especially as you point out we are multi-year highs and the overall stock market is looking a little tippy these days.