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Clearfield, Inc. Message Board

  • osxman osxman Jun 2, 2011 4:03 PM Flag

    Insider Buying

    Ronald Roth, the chairman of the board, just did two things:

    1.) exercised his $1.28 strike options about three months early, held on to his shares; and,

    2.) bought an additional 10,000 shares in the open market.

    He already owns close to 1mm shares so something tells me that he does not think the shares are overvalued.

    Why would you exercise options early? Because you think the stock is going up. The difference between the market price and the strike price is counted as ordinary income, so if you think the shares are going higher, you want to do it when the price is lower, rather than higher.

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    • He has been right-on in the past and it's a no-brainer; there is so much business in the pipeline and the equipment is being so well that revenues are probably going to be growing for the foreseeable future. This is quite a combination for such a small company.

      • 1 Reply to red_sox_10_nyy_3
      • I continue to find his buying patterns stunningly positive. With the position he already has, investing another $160K+ at market prices in the last months is just amazing to me. One has to believe he would not being doing this without the anticipation of VERY significant gains from this point. Whether from earnings growth or buyout, from my viewpoint, it doesn't really matter.

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