Insider DilemmaHypethetically speaking if you are the insider who was lucky enough to sell those 50,000 shares @ $3.50 each for proceeds of $175,000 what do you do.
First of all what incredible timing to be able to sell on a NR and on an upswing when you just may happen to need the cash to cover a PP purchase of TIG shares. I remember a previous insider sale the last time the SP briefly went past $4.00 and they were able to sell at $4.00 (again, lucky on the timing)
What do you do with the $175,000? Buy approx 166,000 PP shares at $1.05 Then your immediate on paper profit is $91,300 and this is not including the profit you made from sell in the 50,000 CAN shares you probably got as options at a much cheaper price.
Do you buy some of the 3.9 million options at $1.31 this would give you 133,500 shares of TIG for an immediate paper profit of $38,715 plus again the CAN profits. I think he/she should wait on this one as these options do not expire until September 8, 2016
Lets not stress the insider out but besides the options, all PP shares come with a warrant good for one year ecercisable at $1.50 and 2 years at $2.00 He/she is already up money on the $1.50 warrants.
It certainly could be stressful to be an insider. Lots of decisions and variables to think about. Fortunately most of them are profitable variables
All of the above is hypothetical of course and dependent on certain variables.
GOOD LUCK to all CAN longs (who paid retail and used their own money) Our time will come.
I am looking forward to seeing PATTY have to cover his short at a much higher price