"I REALLY hope the sell on the 28th was for tax loss reasons. I know 123,000 shares is a small percentage of what the insiders own but still ..... any insider selling now is not what I wanted to see. Thoughts?"
good morning and happy new year everyone.
while it is disconcerting for all of us longs to see an insider sale of 123,000 shares a few days shortly after our share price had gotten pummelled a tad, the questions that probably needs to be asked is WHY? and WHY NOW when the current share price has taken a substantial hit and the BFS has been completed?
it doesn't seem like this transaction was done for tax loss reasons cause the timing is definitely off. does it make sense that an insider who had purchased 12 and a half million shares (some at prices substantially higher than the current sales transaction) would even want to dump 1% of his holdings willingly?
could it be plausible that maybe due to not just the recent drop to our share price as well as the past 3 months downward share price movement ( while our insider had been in blackout) that a margin call needed to be addressed and this was the first opportunity to do so?
insiders are people just like the longs on this board that can overextend themselves thinking that a buyout had been imminent for the past couple of years and also being disappointed for now from the lack of a offer.
the above may or may not have been the reason, but insiders could sell for a host of other reasons that have nothing to do with the viability or belief in this project. the other side to this equation is that insiders buy and hold for ONE reason and ONE reason only..... cause they think it's going to pay off. that's what attracted me here in the first place.
if insider selling were to continue ongoingly in a major way and become a trend, then that would be a major concern. however; they would be cutting their own throats trying to sell on the open market their 65% ownership when daily volumes only average 3 or 400,000 shares. buyout is their only exit without harming themselves.
glta longs and follow the money
hka
