Will be interesting to see who is selling.
I was really happy when Cross-Link bought shares as I thought it was bullish to have a "smart-money" firm buying. If it is one of the other shareholders that converted the preferred then (1) they likely had good tax reasons for selling and (2) they might still have a number of other shares to sell.
We'll find out soon who sold. Cross-Link bearish; anyone else bullish.
Any trader's out there who want to explain the decline?
I think someone wanted to sell their shares and knew that there was someone who would buy at $.60 so they sold their shares on the open market until they got to the point where the "big" buyer stepped in. $500-600 K isn't exactly a big transaction but it is for eGain. Did the seller know of this buyer before they started selling?
Looked into the requirements for filing Form 4 and 13G. The Form 4 applies to insiders and the 13G is generally filed by passive investors like CrossLink Capital. In other words I expect a 13G filing rather than an insider sale. The 13G applies to 5% owners and has to be filed within 10 days (48 hours for Form 4) so we likely will have to wait to find out who the new shareholder is.
I'm not 100% sure of the sellers obligation to file. I think they have to file a 13G within the same time frame but I may be wrong.
Doesn't really matter. All that matters is what sales are and what the cash burn is. I'd be lying if I said I was looking forward to finding out and I hate having to once again talk about "cash burn." eGain hasn't been there for at least a couple of years.
Mr. Eric Smit I hope you are keeping a close eye on those cash balances and making sure the returns from those investment in marketing are worthwhile.
Mr. Hresko, please justify your existence! So far the plans have been good but execution less than stellar. I don't know when the right time to pull the plug and retrench is but you have to be close. The problem is I don't honestly know what the alternatives are and I tend to doubt there are any aside from selling out. Perhaps there are none.