I got to ask why the previous CEO and/or anyone else with the now freed up shares would want to sell at these levels. I base this on the volume seen during the past 3 days, since the lock-up period expired. My first thought is why would anyone want to risk a sure thing, so sell some shares and make some money. You could always buy some more once you drive the price down. Second, IMO you got to go back and look at the facts, in the form of the past 2 earnings reports, since the IPO. The first one disappointed so badly that it took the stock down to $3. A lot was blamed on the government shutdown, but that’s well over now. The second earnings report also caused a temporary drop. Since then there were a lot of headlines about how fast and wonderful their product is and how many companies, including Europe, are loving it, but there were no hard facts, at least that I saw, on actual sales. Until we learn otherwise, the problem is still the cash burn and revenue, so with such an uncertainty, I could understand the selling. Based on the volume these past 3 days, I would assume nearly half the freed up shares were traded. So what now, more selling or wait for a higher price. Personally, I go back to my $3.80 level. Near the close Friday, we saw the stock hit $3.85 and close at $3.90. Who knows what Monday will bring? Personally, I think there will be some more selling for the reasons I stated above. However, I also think the buying will start increasing significantly as the price goes lower because we’re now getting to some resistance levels. With all this said, this stock is still a big gamble because of the burn rate. It’s literally a race against the clock. IMO if they can pull out of this burning nose dive then there could be a very significant upside. Each earning report going forward will tell us more.
With the recent changes to downsize the company and trim operational expenses they have enough cash to last thru 2015 should the revenue remain flat. The second earnings report was very close to projections and they had to write off some expenses. The only way they can turn this around is with good leadership and that is starting to take shape with the recent changes. This upswing wont happen overnight and my opinion is it will be a year before they are profitable. This company has the best technology of all the companies competing in this space.
As for the recent stock activity, I can't find any reports of officers selling a single share over the last 3 days. I think we have some that may be selling to get a little cash but I agree not many at these prices. What I think is more likely is that shorts have been planning this for awhile and knew if they started a sell with the lock out over the price would go down. My two cents. I think it may be a good time to buy, this company will turn it around - the technology is too good. Again, just my opinion.
There was one SEC filing late last night, a senior officer sold some stock to cover the taxes. The form 4 the trans code was "F" which is the same grade I give to the shorts on this board. It looks like the bears had old stocker10912 and a lot of others running scared for nothing.