Days to cover is one, although I think since that date the average volume is done quite a bit.
For the record, both Brown and McDermott had 350k and 75k options at 48 cents strike price which were due to expire on 12/8. Brown sold 275k shares and kept 75k shares and was awarded new options at 1.76. My guess is he made the compensation committee aware of his desire to lock in some profits on some of those 350k shares since I'm pretty sure he didn't need to sell all of them to cover the taxes on their exercise. So they awarded 200k shares to cover him in case the stock goes up, which is after all one of his primary missions in his position. Currently, he has a little over 100k shares in his portfolio.
McDermott exercised and sold all 75k shares and was awarded 80k shares at 1.76. She only owns 27k shares outright at this point.
Obviously, markets are uncertain and who knows what calendar year 2014 will bring but I'm not ecstatic about the CEO and CFO of LRAD selling so many shares when the future is supposedly so bright. I'd rather have management with a lot more skin in the game than out, which is where they stand after selling more shares than they currently own.
As a shareholder, I have to ask myself this - how much money have they each drawn in salary since their appointments and how much money have they reinvested in their company's stock? If they were to have purchased shares when they were sub one or in the low ones, they would have been spending a fraction of their total salary draw. How confident are they, and subsequently we, in their ability to increase shareholder value if they don't or won't own shares?
Once again, these are reload options that nearly all companies give senior executives. Very standard stuff. An individual is given deeply discounted stock options, many time at 0, the stock goes to 2 the individual sells and can reload the same number of shares again at deeply discounted prices. A racket but a legal one.
I suppose they are just like most other companies then. And I should have guessed that Tom and Kathy would do this the way they hoarded the LRAD cash for so long. Fits their management style. Bottom line is they need to generate revenues above and beyond the teens if they want to generate more investor interest.
So basically what you described was a scenario where management is totally self serving. Brown and gang have a running machine that rewards them very handsomely and is not based on their performance. They are motivated only to keep it going to sustain their unwarranted rewards.
You make a very solid point on that if the BOD really believe in the company and in their abilities to take this company somewhere then we should be seeing them buy shares on the open market out of their own pockets .. which really is the shareholders money that they are getting via salaries.
This company does have potential .. but it is heavily stifled by Brown's limited abilities. It would be a wonderful day when we either replace Brown and gang or get bought by a company that has vision and can take this technology forward
I am a possible new investor here, but am very perplexed on the insider selling at these cheap prices. I understand that the stock has gone up significantly but when one considers the total shares these people own are miniscule. The company is poised to grow and the fairly recent settlement with the shareholder activist seems to be a positive development although I don't have all the details of the lawsuit. Too many conflicting issues here. Unless someone on this message board can tell me otherwise, I'm leaning to either pass on this investment or might nibble if it goes back down considerably.