I hope this information will be helpful to some of the posters and/or lurkers.
The SEC rule that provides the framework for pre-scheduled insider trading ("blind trading") is called "10b5-1".
For us, SEC Rule 10b5-1 is a defense against trading based on insider information (in other words, against screושng the investors over). For the insiders, playing by this rule is insurance against allegations of the above, while retaining the ability to sell shares.
Some links about SEC Rule 10b5-1 :
More about the latest "blind sales" by PLX insiders in the next post.
It's astonishing the lengths people will go to to convince themselves everything is ok with their pet companies. The fact is, all of the top insiders sold a good chunk of their shares. The implications of this fact are:
1. They didn't think the stock price was going higher than $7.13 anytime soon.
2. No buyout from Pfizer or anyone else is coming.
3. They don't think approval in Israel or the EU is going to be a catalyst for the stock.
If the above implications were not true, they would have waited a little longer to sell their shares. No amount of spinning about "blind" sales will change these facts.
It's astonishing how stupid you can be, Sir.
There is not one single word in your verbal diarrhea that is remotely relevant to what I said.
Some ignorant poster made a false claim that the transaction was not pre-scheduled. The filing proves that in fact it was.
Whatever stupid BS you are reading into my post (while bullying me) is a matter of your own lack of reading comprehension. I have successfully aqcuired English comprehension as a foreign language. You ought to learn your native language for starters.
fat, you are amazing. there are not many people out there who are able to extract so much insights from something as simple as insider selling. but i'm confused as to what i'm suppose to do with these information. am i suppose to buy more now since it seems the bleeding from this news has already stopped. or do i sell since not everyone is as smart as you and the crowd will slowly realize what you've laid out here so the bleeding is just beginning.
i'm anxiously waiting your instructions.
You guys try to read wayyyy too much into things like this.
The bottom line going forward for PLX is it's all about sales and continued development now and nothing about management selling some of their shares to reward themselves.
Given the opportunity, I think all of us would've done the same.
Whatever pleases you - no management sold more than 20% of their current holdings, so they have Summer spending money, that's all -price may go up or down in next few months but they can focus on next stage of company progress, not shares they hold. You are fat, baloo.
Let's take one of the recent filings - that of Dr. Aviezer.
Here is the original SEC Form 4 document:
The sale (of shares converted from very cheap options) is in the last line of Table 1:
Common Stock __ | __ 05/02/2012 __ | __ | __ S __ | __ | __ 450,000 (1) __ | __ D __ | __ $7.13 __ |
Now let's see the meaning of the "(1)" next to the number of shares sold. Go to the footnotes at the bottom of the document. You will find this note:
"Explanation of Responses:
(1) The sales reported on this Form 4 were effected pursuant to a Rule 10b5-1 trading plan."
(I hope the above will be of help to some, including a certain unnamed ignorant poster.)
10b5-1 plans are a total joke. Insiders set a sell price or an order to sell on a specific date in advance. Insiders can then cancel their plan at anytime without penalty of insider trading.
Check out this paper for more info: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=541502&