Long_vrts2, would you be so kind as to give your opinion on the CFO selling his shares, if you have an opinion on the subject?
Thanks in advance
1 Reply to raysfrom98
long_vrts2 • 6 hours ago
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"To answer your question, I will first rephrase it: "Why did one sr. executive and 3 directors exercise options and sell shares into the offering, and not the other 3 sr.executives and 3 directors?" The other 3 sr executives being Marucci, Davis and Keler, who each own a ton of shares, and know CLDX and its prospects better than anybody.
A little history: CLDX came about from the reverse merger of an older public company AVAN and the private co CLDX. Catlin and the 3 directors who sold shares came over from AVAN, so they had shares that had vested earlier and were also going to expire soon (in 15 months). Why do insiders sell during public offerings? Because this is when things are made public through the prospectus and presentations to underwriters, and therefore there is no risk of acting on- or giving the appearance of acting- on inside information. That's why this period is called the legal "window" when insiders can exercise vested options and sell shares. The other procedure would be to have designated time intervals when options are exercised and shares are sold, but while this may work for a company like Pepsi, it's not a good fit for a development stage biotech."
Continued on next post:
rays If I may add some perspective?
There are many NEW CLDX players around..many BOUGHT shares on the PEAK RUN to 38 and they are looking at shares now around 22-25 range..so that is dissapointing to them! When you layer on that INsiders sold OPTIONS that would become TRASH if not exercised they see that as a weakness when we add in the 8M shares Dilution..they have a point,ok?
That being said its all relative and for those of us who have been here since the Avant days we see the OPTIONS as REWARD for sticking around and getting the job done..I would have done the same thing! The timing just sucks..thats all! If they are TRULY LT players in CLDX they will admit they BOUGHT HIGH and now on this pullback the prudent thing to do is BUY AGAIN and if real smart DOUBLE DOWN....
Otherwise all these CRYBABIES should put a stick in it and SHUT THE Feckle UP!
These OPTIONS will expire worthless and they were struck at $8 and sold I think near $25 so thats about $17 profit per share..who in their RIGHT MIND would have done le$$???
I have made pretty good off of CLDX and will not be without any shares with the things impending, but I have been trading quite sometime and I have learned to always be concerned when insiders sell. I lost a bundle on CROX. All I am saying, is greed will get you ALMOST everytime. As good as things look for CLDX it is still a speculative stock and insider trading should always be a concern no matter how anyone spins it.
Yep, be concerned after this I agree quite accurate and cogent explanation by Longvrts, that I and most here would agree with it. Insiders sell option idiot because option expire and they can only be sold at a certain period of time by insiders lest raising the ire of suspicion let alone legality of trading on what bodes to be a more or less constant stream of vital information before releases during the next 15 months. A pay date is a compensation date. And the longest held member selling options and some about to retire DOES NOT mean squat. It is a NON-FACTOR. It make sense. It is called compensation. You take it when you legally can. Period, noting more nothing less. Fool! Oh, and how is CLDX a "speculative stock" . That term cannot just in your naive fashion be paper checked on. If you look (which you did not) and did DD you would see that that designation quickly loses all meaning here. Go dose yourself in saltwater and throw yourself back in the stream and painfully caught on a "short": hook, lol
I have a friend who had to pay more in taxes than she received because she needed to exercise her options, but missed the window to sell them. The stock eventually ended up going down and when she could sell, she needed to sell them to pay her taxes. If only she had been able to hold them 6 months more, she would have been a millionaire.
Good point! How come nobody asked until now why Marucci, Keler and Davis didn't sell any shares? Between them they own several million shares, could've sold a few at $24.50. Doesn't the fact that they didn't sell ONE share at $24.5 tell us something?
Sentiment: Strong Buy
Marruci, Keler and Davis....THEY ARE ALL FOUNDERS! They started the Co.and PUT up their own personal resources to START CLDX long ago....Founders are the Backbone of any Co!
It says the same thing to me that Dr Frost says ANOTHER FOUNDER in OPKO that he has NEVER sold any shares and today owns over 33% of all OPK shares...GET CONCERNED my friends when the FOUNDERS start to SELL...lower level EMPLOYEES in IR like Chip Catlin (no offense Chip!) do not concern me when they SELL!
Those options EXERCISED are a form of Compensation (DELAYED) btw and I would have done the same thing!
You are absolutely correct evidns. I am very satisfied as to why these sales were made. I do think we move higher from here. CLDX now has plenty of money in the bank to continue the work. Biotech's have all been beaten down. That will change imo.
Several of us did point that out, but our reasoned arguments got buried by agitators who bombarded the message board with doom and gloom posts based on misinformation and misinterpretations of the insider sales.
Sentiment: Strong Buy
Thanks ray and long for giving insight into what has been the unknown. I don't come from an investing background, so I truly find some of these post educational and are helping me understand the workings of day in day out crazy trading. I've always been a buy and hold kinda guy who has never taken the time to look at the finer details. Visiting this site and reading what some of you have to say, (you know who you are out there) most of the time it's over my head but I research it and learn. So I just wanted to say thanks from a eager learner.
Long_vrts2 continued answer:
"From Catlin's perspective, he's 65, has been battling in the trenches for 40 years, he deserves a payday when he's close to retirement. To risk losing $3M because of options expiration would be foolhardy, even more so for a CFO. To look at it another way, there won't be another public offering in 15 months (or ever actually given the $315M in the bank), and there will be a steady flow of trial results coming into CLDX headquarters over the next 15 months, that will be considered inside information until made public through press releases and conference calls."