"Why would insiders register to sell shares "just in case"? It doesn't look good and raises concerns and doubts. Insiders register to sell because they are looking to get some profits."
Can't speak to FTEL, but I can to registering stock to sell for other than the reasons given.
It is important not to accept things at face value. You have to look at the situation and not just paint a very wide stroke. That can lose you profits too. I agree with CC that insiders registering stock to sell is a red flag, but there are reasons other than dump and run.
Common reasons range from negative such as knowing the stock price will be hit because of like future company shortcomings (temporary or permanent), to neutral such as wanting to take some profits when the stock is flying high or sell some to balance out a portfolio (some people actually do this), to the positive such as registering shares because they may be used as collateral on loans. I know of two instances of this last example, both involving OTC/BB stock. In one case, the founder of a company uses his company holdings, along with other personal assets, to collateralize loans granted to his company. For small businesses, this is a very common situation.
And the adventure continues... |
