Strange activityOn June 1 Chair Henry Demone swtiched his 500K of shares from direct ownership to indirect capping off a number of unusual insider trading with trivial sells by a couple of board members. The sells almost look like it was done simply to report a sell. Why? Suppress the HLF's share price raise so a deal can be finalized maybe? Activity seems confined to the board members.
So why would Demone switch his ownership now? An optimist hoping for a buyout of HLF could say he could want to switch ownership for tax purposes so capital gains are expensed better. Then again who knows why.
HLF for its part started buying shares at 18.00 after being absent from the market for a while. Why now? Seems a bizarre time.
Yesterday was a crazy day with volumes not seen in months. In amongst this was crosses of a total of 70,000 shares by Cormark (and another 20000 shares this morning). Morgan Stanley and Goldman seem to make up the bid with CIBC and Scotiabank being the primary sellers. There is a lot of shares changing hands in the 18.95-19.05. (Well alot for this stock).
Annoyingly SG Capital of Chicago seems to play the same weasal-ly little game of selling in the last minute to knock the price down by 7 or 8 cents at the close.
Anyway to me it is unusual activity for such a sleepy stock.
Technically I think there is still a bullish flag forming and the breakout line keep descending. I figure any close above 19.30 could be the start of another leg up. However it looks like there is still a large block of shares to sell around the 19.00-19.05.