Good timing Lululemon Athletica Inc. (TSX: T.LLL, Stock Forum) (NASDAQ: LULU, Stock Forum) founder Dennis (Chip) Wilson sold almost $50 million worth of shares last week, according to a filing with the U.S. Securities and Exchange Commission.
That was just before the yoga pants retailer announced on Monday that it is looking for a new Chief Executive Officer following the departure of longtime supremo Christine Day.
SEC filings show that Wilson sold 607,545 shares for $81.50 on June 7, 2013 for $49.5 million. He also sold another 392,445 shares for $81.87 on June 4 for $32 million. On May 20, 2013, he unloaded an additional 377,415 shares at $81.67 for $30.8 million.
By selling $112 million worth of shares in that period, he avoided the 23% stock price collapse that occurred this week following news of Day's plannned exit from the company.
After the sell, I wonder why he did not open a huge short position?
Jesse Lauriston Livermore would have done it.