The former CEO of ELNK, Rollo Huff, sold all 2 million of his vested shares per the recently posted proxy statement.
Normally, the company has first right to purchase the shares of former officers. It will be interesting to see if ELNK used some of its extra cash to reduce the share count. I do not expect clarification until the Q1 report in May. Just speculating.
McRed had some strong feelings about Rollo's leadership.
Your negative view of ELNK does not hold up as they have over $130 million in cash. They are looking to pay down debt starting May 2015. ELNK has also announced they are willing to sell hard assets that generate low margins to improve their profitability and pay down even more debt.
Revenue is where ELNK faces a challenge. The old consumer business is winding down; they are controlling costs to avoid loss. The new managed services business is growing; however, it will take some time for it to become the primary revenue generator.
In the meantime, ELNK is paying me 5% in dividends to hold the stock. I am a long term investor. Five years minimum is typical for me. The current low share volume indicates that retail investors and institutions agree with me.
95% of Large Institutions reported their Dec 31 holdings. Most increased their stake in ELNK per the NASDAQ website.
APG and TriOaks sold out. Artisan reduced their stake. The net result is a higher percentage of ELNK shares are held by the Tutes.
The Short Interest for Jan 30 is still above 7 million out of 101 outstanding shares. There is room for a mild short squeeze should the Q4 report on Thursday be positive. The 52 week high is only $4.75 with no serious ceiling above that level.