Am surprised the sale of shares to acquire options is a positive sign. If the entire amount received from the sale of shares was used to purchase options, then I would agree. With the figures quoted above, selling 5.9 millions shares would have surely enabled the director to buy more options than what was acquired.
Wouldn't the fact that not all the monies from the sale of shares was used to acquire options be a negative sign, i.e. the director is reducing his exposure to the company and not increasing it even though in quantity it might appear to have increased but in $$ terms it hasn't. Could this not be a sign that result are not expected to live up to expectation and there is potential for share price to fall?
I don't know much about shares vs options but it just seems logical. Please DYOR. I have heard so many good things about this company and I hate to say anything negative. Just questiing the logic behind the quote.
Why is it negative, he sold 5,900,000 shares at a rough average of .23 total value about $1,357,000. He then bought 6,769,969 options at about .12 total costs about $812,396 with $676969 still needed to excise those options.
He'll have about $550,000 in the bank after the share sales but wouldn't you think he'll need that.
It's not always as black and white as it seems.
If he used all the money from the sale of shares to buy options he might not have enough money to excise them.
If he's so confident that the price would hold and go up you might ask yourself why not buy as much as you can then sell some just prior to due date to pay the rest. As a major share holder and director (I think he's a director) he can't just simply sell options as that wont be well received by the market.
It could show lack of confidence and effect the share price.
There's could be lot's of reasons why he did what he did but I would think the major one would be having to find the money to excise options which is why it played out like it did.
He still has more than what he had and given the market some confidence.
THIS is still a specie but I like the way things are going and support it continues to attract.