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Medical Properties Trust Inc. Message Board

  • jraisus jraisus Mar 6, 2014 10:25 AM Flag

    I AM OUT

    I was a long time holder of the stock and enjoyed a good appreciation. I sold out today because when the CFO of a company who knows the financial condition of the company sells his holding it can not be a good sign. Good luck

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    • here, I did it for you...good luck w/ your other investments, but be certain there are officers of almost EVERY company who have planned sales...not saying that is the case here, but more than likely..

      Insiders are employees who are considered to have confidential information that the general public does not have. This information could impact the stock price if publicly known. A classic example would be a pending merger. The SEC states that an employee may not trade stock if they posses confidential information. So for an insider to trade stock one of two things must happen.

      1) They create a 10b5-1 trading plan. This plan will tell a broker to buy or sell stock based on preset dates or conditions. The insider once the plan is established cannot change it. Typically a new plan is established yearly. This means that even if the insider gains information that could impact the stock price, the plan prevents them from acting on it.

      2) The second way an insider can trade stock is during an open trading period. During certain periods, typically after an earnings release, the company can declare an open trading period and all employees are allowed to trade stock. The limitation again is that if you have confidential information, you are still prevented from trading.

    • what if he wanted an airplane? a nice house? and could pay for it with sales of stock? just to say an officer sold his shares doesn't make much sense - scheduled/planned sales are done all the time, and do not necessarily mean someone doesn't believe in the company. probably should've done a little digging to see if it was via planned sales - which is almost the ONLY way the CFO can do it...as he/she is "in the know" almost ALL the time. oh, well. I'd have said buy more at the secondary offering price of $13.25 - I did.

    • If you don't know the reason the CFO sold some of his shares, how can you conclude that it is "not a good sign"?

    • Do you have info that the CFO sold his shares?

 
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