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Ocean Power Technologies, Inc. Message Board

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  • mmmparsley mmmparsley Jan 31, 2009 9:50 AM Flag

    Why is the boss selling?

    Talked to management directly about this issue for over an hour. Loose_Buoys, I imagine you have an opinion based on pure speculation, so be a little more humble in your approach. I know for a fact that you are in the wrong because I aggressively questioned OPTT management regarding the stock sale and received direct answers.

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    • Could you share your questions and management's response?

    • When a company has everything lined up for a big rally and management KNOWS that the stock is going to rise rapidly, there will be several large insider purchases. Management will borrow money from every source they can find - 2nd mortgage, friends, family members, credit cards. A tripling stock price will cover any high interest loan they may have.

      George Taylor has knowledge of every aspect of this company. The fact that he sold 53,000 shares here indicates that he believes that he has a better place for his assets somewhere else. Either he wants to protect himself from a further price drop or he believes that the potential upside is limited for the next few months. If he absolutely needed cash today (such as bailing out someone financially distressed or purchasing something that had to close now), he could have offered up stock as collateral for a loan. He chose instead to sell stock.

      Some of the posts here allege that there is 100% certainty that the stock will trade in the 20's this year. George Taylor would not be selling shares today if he were 100% certain the stock would rally like that. I'm not saying that George Taylor expects the stock to crash, but I am saying that he isn't convinced that a strong rally is imminent.

      • 1 Reply to loose_buoys_sink_ships
      • loose,

        I do not think your scenario is factual accurate. Yours assume senior management trades the company's stock as ordinary investors. That has not been demonstrated in any study that I aware of. If you have one in mind, would appreciate a cite.

        Similarly, the notion that sales be management has real significance has not been born out, that its no more predictive than random events. On the other hand, you are correct in that purchases by management have been correlated with rising share price.

        For the record, I am not one who thinks, or would suggest, a sp on the 20's is in the cards for at least another year, or more. Plenty of time in '10 to consider the question.

 
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