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Craig, thanks for the link on insider trading. This one is easy to read and to access, and worth looking at periodically. Note that the most recent transactions are on SEC Form 144, which is an intent to sell, rather than a sale itself. It is normal for officers and directors to file 144s periodically, as it makes for much less hassle when they really decide they want to sell. Note also that the low purchase price of shares for some of the insiders reveals how companies like SNDK are able to attract top talent. Employment contracts frequently allow options to be purchased at prices well below market. This is a less expensive form of salary, since if the options are exercised more than a year after they are purchased, the net profit will be a capital gain, taxable at 20 percent, instead of ordinary income, taxed at close to double that amount. The recent insider transactions here are quite normal looking. But if I see a whole mess of sales in the next few months, with insiders holding virtually nothing after the sales, then I might start worrying about whether it's finally time to sell at least some shares. Art |
