Fact. On May 27, 1999, management owned more than 12 percent of the float (shares available to be traded). By June 11, 1999 (just 13 calendar days, not trading days later) management alone, not all insiders, had sold more than 5 percent of the total float. WOW! that is a huge percentage for such a small company. Of all shares sold by management, only 2 percent of those shares were bought by institutions (i.e. banks, funds, etc.). I think that it is curious why all of management is selling at once collectively. Again, these numbers are not counting all insiders, just management alone. I can see selling into good news which is what you have to do when you have such a large postition in a thinly traded stock. Still I have to wonder why all of management is running for the door at once? It is like at the last board meeting soemone screamed "FIRE!" I think this stock has some more room on the down side. With the overall market the way it is, even though it is currently zooming up, I think that we are still sliding on a slippery slope. Sooner or later we will get some traction (with our well made and comfortable K-swiss shoes on of course!), but, we don't know when that will be. I have a "Gut Feeling" buy order in for $33 which is just below the bottom channel line for this stock. My gut feeling next top will be at around 75ish. Hopefully I am wrong about that bottom and the stock will keep bouncing off it's 50 day moving average until it can sustain and re-establish it's upward trend once again. Either way, I will be there for the ride! Good day to all. Keep the interesting posts coming.
See below (from Market Watch). If you do the math, there are just a million or 2 Cl A shares in float, give or take 10-20% and not including any recent insider sales). ANY selling without buyers will drive the price down, just like ANY buying without willing sellers drives the price skyward. ... it's an emotional rollercoaster with these nano-small floats. BUT: Note: mgmt owns 94% of the class B shares! 94%. So, if insiders want to put some Cl A back on the market and some cash in their pocket, it doesn't look worrysome.
""" Equity: Cl. A Com. $.01 Par, 3/99, 18M auth., 10,222,648 issd., less 2,638,932 shares in Treas. @ cost. Insiders own 13%. John Hancock Mutual owns 13%. 4 others own 39%. P/O: 6/93, 1.3M Cl. A shares @ $24.58 by Goldman Sachs. Cl. B Com., $.01 Par, 10M auth., 3,426,556 issd. Insiders own 94%. (As of 12/98) STD: $155K @ 8.5%(wgt.avg); LTD: $500K @ 10%. Analyst Footnotes: 3/99, 2-for-1 stock split (Class A & B). From 10/1/96 - 10/21/96, K-Swiss repurchased 402K shares of Common Stock."""
Much more important is, "how's the order pipeline?" ... So: Did you buy your K-Swiss shoes yet????
Could it be that some kind of restriction against selling was recently lifted? Sometimes companies don't allow selling for certain periods of time then when that ban is lifted you will see a large amount of selling like this. IMHO this is not the type of management that would jump ship at the expense of shareholders.