Innodata downgraded to Hold from Buy at Noble Financial. DID JACK VIOLATE SEC RULES?
did anyone happen to notice that Jack purchased shares on March 5, and sold shares on July 1? The SEC's Short-Swing Profit Rule requires company insiders to return any profits made from the purchase and sale of company stock if both transactions occur within a six-month period. A company insider, as determined by the rule, is any officer, director or holder of more than 10% of the company's shares.
What's most troubling is the timing of Jack's sale - on July 1, Jack already had a pretty good idea that the second quarter would be a train wreck, so why wasn't he in a black period, prohibited from selling??? This is just another example of Jack looking out for Jack while the rest of the shareholders get stuck holding the bag. What kind of message is Jack sending? That 3.20 was good enough for him to get out and minimize his losses, regardless of whether he violated any rules.
Nipper, I appreciate the offer for your tutorial. the short swing rules are so simple that even someone like you can understand them. perhaps you should explain them to Jack. Jack's transactions are clear. And according to the rules, insiders cannot buy/sell within 6 months. The fact that he sold on July 1 is the most troubling, because as the CEO he would have known very well just how poorly the 2Q results were and he sold prior to any public disclosure about the quarter. I'd like to hear you defend that example of trading on inside information.
do not worry about it... INOD next quarter will be double this price....take advantage of the lower prices and let the bashers have a little fun helping you accumulate a strong position before the rise. JUST smile and ignore knowing you are going to be a winner long term...