Why are Insiders dumping their shares?
From Brokebagholder on RB
The number of shares outstanding more than doubled since June 30? Where are all these shares appearing from? Insiders exercising their options it would seem.... Why would anybody dump shares now considering GRIN is an easy 100 by Christmas?... maybe these guys on the inside think GRIN has topped out and will fill the GAP back to 5 by Christmas.... Maybe these insiders have been around a while and saw that GRIN ran last year on Furby mania and gave back most of the gains quickly after the daytraders left it...
We have further information on Grand Toys (GRIN:NASDAQ). As of June 30, 1999 GRIN had a total of 1,577,597 shares outstanding. According to the transfer agent, 2,527,634 shares were outstanding on Wednesday, 3,126,178 shares on Thursday and 3,426,178 today. As of today, 1,110,689 shares were restricted. Given the recent trading activity and this information, the float is likely much larger than previously thought. More than twice as many shares are currently outstanding versus June 30, 1999. We hope to have an accurate number for the shares in the float from GRIN on Monday. As of June 30, 1999, GRIN had 1,647,872 in unexercised options at an average price of $5.63. The transfer agent confirmed that some options have been exercised recently but they could not confirm the number and could not release a list of shares issued in the last month. We have not yet received a reply to email inquiries to Mr. Ron Goldenberg, CFO of GRIN concerning the recent increase in share count. We are assuming that all options have been exercised and subsequently sold into the market. We are also assuming that an additional 200,709 shares were issued under the companies Stock Option Plan, which allows for a total of 300,000 options to be issued. As of July 31, 1999, 94,100 options had been issued. A second explaination of the increased share count is that GRIN sold shares into the open market, or directly to Market Makers.
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