Last year insider sold 6,000,000 shares when yield was about 6%. From the sale, insider took
out about $210 million. Bet he hasn't made 6% with that money. Now insider wants to sell a
few more millions of shares when the yield is above 10%. Surely can't find another 10% return.
so why is this insider unloading?? Really bother me
Did a Google trace on the 6m insider trade, looked at the SEC Form 4, it appears the Christopher Cline [owns +10% of NRP] basically transfer units from one of his privately held -Adena Minerals to another Foresight Reserves and himself, basically decreased holdings held by Adena and increased Foresight / personal holdings. Why? no idea, his net worth is 1billion+ so might be a tax thingy or buying new yatch. IMHO is not cause for concern or panic. Tempted to increase holdings but would overweight me in the mining sector.
Could be a margin call. Or closing a prepaid variable sale.
Per the 2011 10-K, Adena has put up most of its NRP units as collateral for loans. That disclosure was not shown in the 2010 10-K, so presumably Adena put up the units as collateral between February 2011 (date of the 2010 10-K) and February 2012. During that period, NRP's price was a good deal higher than today. So maybe Mr Cline is getting squeezed.
The funny thing is that in the 2010 10-K, Mr. Robertson's companies had put up a lot of their NRP units as collateral for loans, but that disclosure is gone this year. So he apparently paid off the loans and kept the units, or substituted collateral.