Please don't get me wrong. I like the company and fundamentals and am very long this stock with a nice profit. That being said, I'm nervous about holding my entire position through earnings. This company has a history of gapping up or down, a coin toss, after earnings. And with Bailey unloading some 35,000 shares just a few days before the call I'm getting cold feet. Any thoughts guys? Much appreciated.
Okay, sec 4 sheds some insight. Bailey Family trust owns the shares.
1. As of the date of this Form 4, the reporting person holds Questcor Pharmaceuticals, Inc. stock options to purchase 1,518,339 shares of common stock; of such amount, 1,104,796 shares are fully vested and exercisable. The reporting person also holds 147,422 shares of Questcor Pharmaceuticals, Inc. common stock, of which 48,422 shares are held directly by the reporting person.
2. Options were granted under the Questcor Pharmaceuticals, Inc. 2006 Equity Incentive Award Plan.
3. The option was granted on 02/06/2008 for the right to buy 500,000 shares of common stock of the Issuer. The option provided for monthly vesting over 48 months from the date of grant, with a 12-month cliff, whereby no options vested until after the twelfth month from the date of the grant. Options to purchase 293,339 shares remain unexercised from this grant.
The sales reported on this Form 4 were effected pursuant to a Rule 10b5-1 Trading Plan adopted by the reporting person in the second quarter of 2012 and effective 90 days post-adoption, which plan controls the exact dates and amounts of sales.
So, these were planned sales regardless of price, to be worried that these sales are a reflection of current sentiment of Insider would be unfounded. This information was easily found on SEC site. If you plan on making investments in any stock, I suggest you get familiar with the SEC site and bookmark it for future reference. It may save you some anxiety.
Sentiment: Strong Buy
I found all of my info there too. If I understand it correctly, these shares are being sold by a third party without his knowledge? Meaning they have no more or less inside information than the users on this board do? If that's the correct way of looking at this, than peeling off 1/40 of the shares owned and/or vested at the periodic highs is just smart investing. Still a considerable number of shares left.
I'm long, still long, planning to still be long for a while. But since there is limited information disclosed about this company and folks are analyzing anything disclosed, it is worth looking at this too. The maxim that a insider can sell for a variety of reasons, but usually only buys for one is still true.
On the 16th, you posted this:
"I have a small short position that is profitable if you must know."
So when exactly did you go short? It must've been a long time ago. And when did you go long? Unless you're shorting against the box, you couldn't be more than a dollar or so in the green.
Of course, your angle is pretty transparent anyway. Best of luck!
You asked for this........Don't be a vagina, lol. Just kidding, (pun on your name)
Seriously, he has not sold any of his shares. He has 99k. These sales are indirect. Meaning, he doesn't control them or own them. Could be a relative? Have to check the SEC form 4.
Sentiment: Strong Buy