For those of you who may have been following my posts on Ancestry.com, I wanted to invite you to my website. Since we tended to migrate to Ancestry.com, I thought you may be interested in other companies I like through the firm I work for, Valuentum. Here is a link to the website:
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In all, it is a pleasure sharing my thoughts with this group and hearing yours, and I hope to do so on Valuentum as well.
I'd hate to own a company where the top execs are buying the company's stock. I see it more of red flag that the comapny might be in trouble than insiders think the stock is undervalued. I see it as a last ditch effort to get shareholders to buy by having the "if the CEO is buying and he knows his own company, then it must be time for me to buy" mentality. For one, I'd have to say that insider buying is so overrated. To me its over rated to look at insider buying because these execs granted so much stock options so they are covered wether the stock goes up or down. If it goes down they still get their options and can make money off those options and their paper losses from the higher purchase aren't so bad. Shareholders don't have that option if they buy when the insiders bought and it keeps going down all they got is paper (or even realized) losses. NO one's knocking on their doors granting them any options.
well, had they kept the secondary to the original indicated size and priced it just a bit lower, the stock might have performed better...but remember that the market (and certainly NASDAQ) has not performed well of late.
mr william, Thanks for pointing that out.
What is puzzling me is how a stock like this can go down 6 straight days..including days after the secondary offering.
I don't get that part. That seems a bit extreme. Any ideas?
If I may make one point: Tim Sullivan had not sold any any of his shares in the open market (unlike other insiders) nor did he participate at all in the 2010 secondary (unlike other insiders). At this point let's cut him a little slack and let him get some liquidity. This was a neater, cleaner way to do it.
As far as sales. Who knows what the insiders reason for selling is. Could be personal. Could be an emergency. Could be this is a small comapny and they wanna sell to be actual millionaires. Lots of reasons. Also, lots of the sales are options and automatic sales which means it wasnt a spur of the moment sale. Also, who cares if a guy is sitting on $200K profit in options that expire soon and sells while he's about to get granted more options. His $200K will become worthless if he doesn't sell before expiration, so he's got to sell sometime. Lastly if insider selling is the kiss of death, check out QCOM.
That is a problem with smaller companies; the Ceo's themselves are not super rich and tend to want to diversify newly acquired wealth in many cases.
The only way to see if management interest is alligned with shareholders is if the stock is rallying and business is good.
They are doing ok on both of those counts.