The insider trading report needs to be understood properly.
I have studied the Stockwatch insider trading report carefully, and I questioned representatives from Sungold today about this matter.
Before the options expired, H.B. exercised 350,000 options at $0.96 and H.S. exercised 150,000 options at $0.96. H.B. transferred those 350,000 shares to another entity at $1.00. These were transferred to an 'inside friendly' entity for H.B.'s personal accounting purposes (experienced investors will understand). H.S. did something similar. None of these shares were sold on the open market. It would be ludicrous to suggest they were sold at $1.00 when the shares have been freely trading at 2 - 3 times that price. H.B. still has 450,000 shares in his name, none of which have been sold. He would have had a lot more if the VSE had released about 1,250,000 shares from escrow. H.S. still has 297,000 shares in his name, none of which have been sold.
Once again, DD can produce bogus results when it is not done properly.
None of the company insiders have been selling shares. They are working very hard to increase the value of their own shares and the shares of everyone else who owns a piece of this company.
Everything is moving in the right direction for Sungold. IMO there's no way the insiders would be crazy enough to sell now, and this opinion has been confirmed by representatives from Sungold. If some non-inside shareholders need or want to sell now, that's their business, but to suggest that insiders are selling now is nonsensical.
The fact is that entities closely related to company insiders now own 500,000 MORE shares than before the options were exercised. |
