The insiders already made their money...if they could get much more they wouldn't have sold into this rally. They know it and you sure know it, too. When insiders sell $36M worth of shares within a short period after the stock surged from 4 to 20+ and they sell nearly at the top you know where this is going.
Any longs that are big time in the profit I'd encourage to take the initial profit off the table. Seriously, do yourself that favor and let the rest run for free - whichever way that will be. But with a 200-400% gain you have to take the initial investment out. Don't ask me how I know this...
And look at insider selling from 2007. Why would they get out now if everything is as good as the bulls here on this forum say? I think the Chief Scientific Officer, the CEO, the directors, the CFO, etc....why bet against the insiders?
My understanding that in a stock offering for a takeover, those insiders have to wait 2 years before they can cash in on their shares. It seems plausible that they wanted to take their cash before being locked out.
You are exactly right. Folks are not seeing the writing on the wall. They are selling now because the deal will soon be done and they will not be able to sell for a time. I think it will be 18months instead of 2 years, but otherwise you are right on. We are going up from here, for sure.
Nvest, thanks for the link to the insider selling. I was aware that Gold, for example, took some deserved profits, but Whew! Please tell me if I am reading it correctly: Did Richard Brewer sell 104,171 shares at average $24.89 and has only 16,900 shares left? Did accounting officer Greg Cox sell almost half of his shares at $26.82 and has only 24,571 shares left? And earlier on April 16, did Gerardo Canet sell 109,171 shares at $21.40 and has only 20,956 shares left? Might they have sold because they have automatic windfalls of new shares coming soon with FDA approval?
I am trying to comprehend why they would liquidate anywhere from 45 percent (Cox) to 84 percent (Canet) to 86 percent (Brewer) of their holdings. DNDN longs might be gravely concerned when directors dump 84 and 86 percent of shares. That's not a little profit-taking. Do you think it indicates a $27 ceiling or, worse, the potential for a future monkey wrench?
Of my 18K averaged at $4.10, I sold 12K at $20.80 (not the shrewdest play of the rally, embarrassed to say), and then, seeing the last two trading sessions, replenished 4K at $22.10. I'm still up more than $300K and hold 10K shares. My target, even on April 28, has been $32, which is why I didn't sell into the rally. Am I whistling Dixie, based on the insider selling? I'm satisfied if DNDN goes no higher than the original spike to $27, but I don't want to be holding the bag at $17 either. Are you suggesting that the top is in and that we level off here, or that a retrace is likely? Just trying to decipher your words "whichever way that will be." Thanks for your savvy posts.