Jack,
If I am not mistaken there is a certain reporting period before insider can make sales.
Next, you have to correlate that with the stock movement. If I do recall well early in the
year the stock reached highs. It is quite well possible that, while the insider sales may well
triggered the stock decline, the fundamentals are still good.
Is there any information on the dates that these insider sales
took place? If so, one can piece it together again and see what
happened. Obviously, when the price broke some resistsnce points
the drop fed off itself.
If the projections for the first quarter are on target, this should
be a good buying opportunity, regardless of what insiders did.
While we may not like it, they are shareholders like ourselves and
if they had options to exercise and felt the stock was perhaps overvalued
why not sell like other shareholders might have done. You can't expect them
to hold on forever for the exclusive benefit of the outside shareholders.
However, if this was selling prompted by internal events that outside shareholders
have not been informed about, events that would have a negative bearing on the stock
value, then the insiders acted improperly and there would be good cause for a class action
suit against the company. While that may not be an unrealistic scenario, I have not
seen anything yet that indicates improper trading by insiders.
Jan van Hummel |
