Insider ActivityI'll say it again. I don't really understand the issue with insiders selling some of their shares. Despite what some are saying, the amount is small compared to overall volume on most days and small compared to their holdings.
On Tuesday, Mohammed Zaghloul exercised 232,500 options at 0.10. He sold 10,000 that day, 40,000 Wednesday and 45,000 on Thursday - 95,000 shares over three days. Ashraf sold 84,000 on Wednesday. The volume over those days, with the exception of Thursday, was 830,000 - 900,000 each day. Their selling was hardly a factor. Ashraf still holds 4,747,376 shares and Kristine Lewis still holds 2,328,631 shares.
Quite frankly, I'd be more concerned if they weren't selling into the strength that's being shown. You do realize that the shares they're selling we're compensation for their services over the years or shares they acquired in private placements, using their own funds to support our company.
Theyve got every right to cash in, and the shares they are selling are a small fraction of their holdings and a small fraction of the daily volume.
With only 30 million shares and insiders holding about a quarter of those shares, this stock was/can be quite illiquid, and when I first starting watching it, would go days without a single trade. They hung on through those times because cashing in could've really affected the sp. Now that there's some decent volume, they can reap the rewards of their hard work without hurting existing shareholders.
I have no problem with them selling. It's overdue and well deserved.
I put far more weight on insider buying than selling. Like I said before, all insiders from any co. will sell at some time for any number of reasons - the most obvious, to claim their profits. But when insiders buy on the open market, that's more significant. They could invest anywhere, in any type of investment, but to show faith in their company (particularly a microcap) is a great show of confidence and reassuring.
At any rate, I realize it's the only "negative" that some posters can cling to. Goodness knows there's little to attack in the financials or fundamentals of this growing company.
Having said all that, it was a very good week all in all. I think we pretty much cleared out the traders. Just a matter of holding and waiting for the next leg up. Until then, remember 0.08 earnings for the year is a conservative estimate. We're hovering in the low-mid 30s. There's no doubt that NCI is still greatly undervalued based on actual metrics - yep, earnings. Shut out the noise and enjoy the upcoming price appreciation. Take care, all.