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Microcap & Penny Stocks : INTERNATIONAL FIBERCOM, INC. (nasdaq - IFCI)

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To: Jamey who wrote (2367)10/15/1997 1:51:00 PM
From: SunFun501   of 2486
 
Why is everyone so upset that (1) a couple of insiders are selling, (2) they are using stock options as compensation, (3) that they use stock to acquire profitable companies that will have an immediate positive impact on earnings, (4) that they used warrants as compensation or (5) convertables in financing?

1. The stock is up about 1000% from its low.....is there anything wrong with taking profits? Investors will gripe if they take it when the stock is low because they feel insiders are driving it down and gripe when its high because they believe the stock must be at the top.....I think instead you should look at where the company has come and congratulate them on the turnaround. An insider selling doesn't mean he/she doesnt believe in the company anymore....its just means that they decided to cash in and take some profits for a job well done.

2. Would you prefer cash? thats dilutive to earnings. I prefer stock as a motivation for key employees to continue to add value to the company for its shareholders.

3. these shares are not dilutive they are accretive.

4. Certainly, when they distributed the warrants they were not worth what they are now..but the stock went up....these people are entitled to their profits and the current value.....again, many of these were incentive driven and it WORKED.....

5. very common....gave them the financing they needed to operate and buy "Concepts". What would you have prefered? More debt?
From what I can tell the company has put that money to good use...it also reflects in the share price and earnings

The company has done very well....and I congratulate them on the recent performance of the stock. They are turning a profit this year and experiencing excellent growth....It also looks to me that they are making some key acquisitions that should allow the company to continue to grow and improve earnings immediately.
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