IPO's at $20, bumps up 15% 1st day to $23. Crashes below $8 1 1/2 years later. WOW!!!
Bingo on the quick buck theory.... This stock needs some long position accumulation... There still is a boat load of shorted shares out there. As far as insiders go... There has been no big sell bomb by insiders lately. I still hold my theory that Andrus has an automatic sell program going as part of his compensation (and the fact that his first 2 years out of Harvard with his MBA he lived in his parents basement and took no salary working for SKUL, just stock options. He is just selling some share to compensate). Andrus still holds a boat load of stock. The Directors selling is a non issue as they are pulling money out as planned. There was an insider buy lately.
As far as options go... It was big news a month or so ago (based on volume) and a few writers jumped on it. Unfortunate that the direction of the stock has been downward.
Mr. Jeremy Andrus ,311.00K
Mr. Rick Alden , 174.00K
Mr. Aaron Behle ,247.00K
Richard Sargente , 218.00K
Unfortunately, the stock is not doing well. I have good amount of shares and I lost money (too me is a lot of money). I lost my confidence for this company. The managements are the problem at this time. They made few bad choices: 1. big inventory. 2. Big salaries. 3. Sold their shares at very high rate in few months.
I will use my shares and sell January calls to protect myself and bring money into my account. It won’t be good for stock to go lower and people start to short it again. We will see.
Lost confidence in the company or the stock? There is a very real difference here. You don't invest in a company, you invest in a stock. The company fundamentals give value to the stock but the stock trades more than on fundamentals. Fundamentals are derived from past history, current measures, and future prospects. You know a lot about the past and current, but the future you are totally reliant on analyst estimates and/or your own information if you have any beyond the analysts. According to the P/E ratio which takes into account the past and current this stock is undervalued at a P/E ratio under 10. The PEG ratio takes into account past, present, and future based on analyst estimates. This indicates it is undervalued also at 0.48 since they project a 5-yr growth in earnings of 18%. But the stock still isn't going anywhere. Why? Because the investors in this stock don't buy the growth story. It is the only reason to explain not only the high short interest but the poor stock performance. So it comes down to whether or not the growth story is correct or not. You either believe it or not.
Those salaries are nothing for execs. No problem with these expenses; it's the stock comp they're paying themselves that is excessive. I'd like to see them earn this comp via an increase in share price.
If he has an automatic sell program he is then either ignoring his shareholders or oblivious to the problems with this stock. He is choosing personal compensation over stock health and that is not good for stock appreciation. It is his right of course so I am not blaming him, but it is something to consider if you are invested in this stock.
As far as options, what articles are you talking about when you say it was big news a month or so ago? I am not familiar with the articles you are talking about. This December expiration reverse conversion had been sitting out there at least since August. It is what drew me to this stock at that time. With that option strategy available one of the legs is a short sale. If you can sell a stock short and lock in a profit no matter where the stock goes most people would jump on it. What this means is that the derivatives were potentially controlling a large part of the downward stock price movement and therefore throw out technicals and fundamentals. Back in August the open interest in the December expiration was very high as well and I wish I had printed it out. I know there is a way to check prices of options in the past, I just don't know how to do that and haven't looked into it. It is likely people have been using this strategy for a long time. When the December expiration is gone it is likely the short selling may also taper off considerably, or already has. It will be interesting to see if a significant number of short positions will be covered by 12/31 to see if this December expiration resulted in a lot more covered short positions through an option strategy. The only problem is that the freed up money after this December expiration may result in further shorting.