Short sellers — investors who profit off of a decline in the stock price of a company — pose one of the biggest threats to small, publicly-traded companies developing life-saving drugs and devices. Those kinds of companies make up the vast majority of the 30-plus Massachusetts-based biotech firms that have held initial public offerings since 2013. They are typically small, and are putting all their efforts into one or two products with a promise to save lives in areas where there are currently few or no good treatments. Greed is NOT good !
Really gb? Automatic sales are NOT mandatory. My point was that if an insider has faith in what they are doing, they would not initiate any sales. They are already receiving respectable salary's, why sell stock too? They should be supporting the company and shareholders, not abandoning them. You're living in la la land if you don't think these guys have their fingers on the pulse of the results of these studies. Besides, how long do you pay someone who produces no results year in and year out? It appears YOU no nothing about the market.
Sorry, I don't go along with that "automatic sales" story. Those at the top and heavily involved with the success of a company don't just "sell" their shares on some kind of automatic pilot system.
If they truly believe in what their company is doing and the potential financial reward that awaits them, if anything they will acquire MORE shares, not sell them. A sell by insiders many times means something doesn't seem right and they want to get out the door first.
Believe me I do not trust Adam Feurstein with his relentless bashing comments, however, in this particular case it's true. XOMA has never been successful bringing a drug to market in a very long history of trying.
The result of this is simply a job factory for the benefit of researchers, CEO's and board members at the expense of shareholders. The track record is not a confidence builder to say the least. Sometimes facts can be painful.