Don't forget...this company started in 2008 with guys (executive staff) using their own money to get it going. Many of them have see other companies go down with the crash. Do you blame them for taking money out when it is enough for them to b comfortable? I know I would do it. Once things settle down, I guarantee that they will start investing. But given that the stock market is gambling, and that someone hacks the AP twitter account that the market drops 200 points, I think they should take some gains. Option trading makes the market a gamble, and the littlest burp and freak out everyone.
I took a small position after it breaks under $15 without much understanding of the company. Thought about taking some profit today and went to check the insider transaction to figure out how much I should sell it for. There were few offices and few shares selling while the price went down. The only sell under $17 is one from an officer just started selling last Jan. The insider transaction is actually a very bullish sign. So I will sell some for $17.5 before ER and save the rest for after ER.
The reason is that insiders are given millions of dollars of shares for literally a couple pennies on the dollar or min many instances for free. It's free money, especially IPO shares. So the insiders seeing the stock go down sold to buy things or to buy other cos stock. Dude it's all free money. The government or SEC should create a new law that forbids compensation with stock options. Executives should have to buy stock on the open market like everyone else. It's a total screw job to retail investors and the whole world to create shares from thin air to grossly overcompensate executives. Case in point the CEO of JC Penny made 50 million off stock for failing and was there one year. It's a criminal enterprise without risk.
The feds should tax all profits above 250k from the exercise of options by insiders like income, complete with social security(no ceiling) and medicare withholding . That would certainly be alot more fair than the present system that has the governement actively punishing employment. Then you don't have to outlaw anything, either an executive is worth that many employees or not; the present system subsidizes executive overcompensation at the expense of entry level positions
I'm pretty sure you know the answer to your questions you are just trying to cause concerns with unsophisticated investors. The reason they can't buy is because of SEC Section 16(b) rules put in place to discourage it. Often called Short Swing laws. They sell using Trading Plans governed by SEC Rule 10b-5. But you already know all this.
Knowing my level of sophistication, why would you attempt to insult my intelligence via opaque ad hominem conjecture? Short Swing laws absolutely do not prevent insiders from purchasing shares. Conversely, Section 9(a)(2) and Rule 10b-18 actually encourages insider purchases. But you already know this.
whoever gave these posts a thumbs down... I am LONG and have been for over 16 months - so I have a LOT riding on this stock (unfortunately) - and want to see it surge big time. But I have only seen 2 'insider buys' in the last year+ That's why this actually IS a valid question no matter which side of the trade you're on...