Insiders are so willing to sell their shares here and now? I know they own them at pennies and any sale is a profitable one but why sell below $3.00???? Especially when non-insider employees have their options struck at the IPO price. What kind of message are they sending their co-workers .... let alone the investors holding shares that are undoubtedly under water? All I'm getting at is something stinks here. Just because they have a profit dosen't justify selling their shares now. I can't see any other answer but the fact that this company is in trouble and will continue to lose market share to their competitors. I am not short ... this is not a bash. I am a frustrated long of 20,000 shares at $3.00 average. I really want to forget about this position and wake up in 12-18 months and smile but it's getting increasingly hard to stay long when company insiders are dumping on new lows!! Sorry .. just needed to vent. Any better suggestions that would explain these insiders actions would be appreciated.
The main reason that insiders are selling is that it is probably their first investing experience, and they want to get some quick cash to buy a flat-screen tv or a Segway. Most of the insiders were/are young and single, and don't seem to have a long-term view of stocks, vocation, or life. I was one of the ten oldest people there [and may have been one of only ten with two kids], and I was only 35 at the time.
I'm holding my stock, but mainly because it's hardly worth the taxes to sell at this price.
why do they want to sell? Because each and every month, the early insiders vest more and more cheap shares. Every insider has 10-20 people telling them horror stories of not cashing out shares when they had the chance. Why not sell, you are just going to get more
Newsflash: They don't care about your 20K shares at 3, they care about their 100K shares at .09 that they took instead of cash back in the day, and they want to see some money for the 80 hour weeks they put in. When your shares are at .09, there is not a lot of psychological difference between 2.50 and 3.50.
It's difficult to understand why people sell or buy. But if many people have been holding there is a pent up demand to sell. Why can be fear, greed, need, their opinion of the business, markets, economy, customer of this company, vendor, its endless.
I just learned about this company and it fits my profile for an investment. However, when I saw that analyst recommendation I immediately sold. In my opinion, why would you issue a buy in the face of a lockup expiration? The only reason I could see was to prop the price. Now that were back at 2.50 or so I bought my shares back and will add on any weakness.