Hi Eric, I agree that we may not learn why JC sold, other than a Standford professor needed $15+ million in cash instead of his companies' stock. My theshold for insider selling, by the same person, approaches zero with the number/volume of sales. If you understand that maybe you will understand why I don't like the insider selling by JC. On another note, one reason I don't like investing in Pairgain, is the volume of insider sales by key Pairgain insiders. Insider buying at this point would be more meaningful than the insider sales.
If there were no insider sales, I would not be so cautious about buying Amati again, because I expect Amati to succeed long term. The selling is not good for a small company with earnings where they are currently. IMO, the timing is terrible. Did Steve Wozniak sell before his company had established earnings? To put it in perspective, $15+ milllion is more than Amati's revenue in the last year - even though it is less than 10% of JC's holdings.
techstocks.com (see revenue at bottom of the linked page)
I think the bottom is near for Amati, but I will try be patient and buy on the way up, if possible. Amati may not be perfect, but I think it is undervalued now.
;o)
Will |
