MJ,
Not sure about education, but let's try our common sense. Insider selling is never good. Is it bad sign? Not necessarily. Insiders are also people and have to support their families, buy houses etc. Finally, if you have 500K $ on the market it is logical not to have it in one stock, even if it's "your" Co. I wouldn't consider sporadic Ins selling as an extremely bad info. Dilution for restricted shares you could calculate before based on options granted.
When MANY TOP insiders are selling at about the same time this is not a good sign.
The idea that insiders would fill 144 and not sell seems to be rather wishful thinking. Sometimes it may happen, but not too often. Why to fill anything and to make investors nervous if you are not willing to sell?
Another idea, that insiders would sell 3 mos after 144, is coming from another, probably much better, world. Theoretically, they CAN sell during 90 days. Practically, the rule of the game is to SELL HIGH. Ins selling is a warning sign for stockholders and shortsellers. May be to warn them is a very good and honest thing to do, but Insiders will have to sell at lower price after all. Be sure that Ins selling is heavily monitored.
Ins selling in this case is warning sign, not more, but not less. I am making my decisions based on fundamentals, but this is an old fashion and may not be useful during mad cow market. For startup biotech TECHNOLOGY is the main factor to consider. There are many other, finan., patents, mngt etc.
If you can explain, for example, how antibodies against proteins located insde the virus can affect viral activity, than you are in the right place.
Have a nice day. |
