Because the venture capital that put these guys in biz or did IPO (I really don't know the specific story on this stock) want to get some of their investment back. Most of these types of institutions want to be out in 3-5 years, they have an exit strategy at all times. They will keep selling at opportune times until they are 100% out, and they move on to the next oppty. It doesn't mean FIVE won't do well, but they probably already have a 2000% gain or such, and hanging on for a 4-bagger isn't their style.
I have been waiting for an oppty to buy some long term calls or leaps in this, the secondary should give me a pullback to get in. This is a long term growth story. They haven't even got stores in CA yet, we need this kind of store. No competition in this range, except maybe big lots, but that's not an appeal to teen girls. Ross and TJMax sell clothes to teens, but they don't have the rubber band thingies, and all the other type of #$%$ these kids want. These days, the kids only have $5 to spend, not like the gogo 1995-2006 when Mom and Dad had lots of home equity loans, and the kids could blow $20 anytime. FIVE has some cute #$%$ (I say #$%$ cuz it's chinese land-fill fodder, and all my section 8 tenants love to buy that stuff, and I see it overflowing the trash cans soon thereafter). They also market really well. Check their website.
time to buy, bought more here at 45.10. i think this will price at $45 so usually once that happens it will trade above that. this stock could be dead for a couple weeks though. Im thinking about 5-7 months though so although this isnt a pleasant drop, its actually good if you need to buy. i had a partial position and was planning to buy more at some point, maybe averaging up, but i have to take a shot at this opportunity. This isn't dillutive, so this really doesnt change anything. i have no idea why they are selling but after IPO's this is common and also common that they are selling way too early. Almost always the stock will recover within 1-3 weeks.
Figure FIVE is way over valued and they know it so they hire Cramer to pump and they dump. Very Simple
Cramer is agin pumping Five to get the dumb money in so the Big money can exit out the back door.
Valuations count Five PE 39 and RAD $ 2.77 PE 9 RAD will double before Five $ 37