RE:RE:Long term, this price is a giftI agree Johnny. Insider selling is a concern. But, insider selling analysis isn't so binary I. The sense that any selling is bad. In other words, is the guy selling a little piece or dumping? For example, if someone sells a little bit of stock, but doesn't sell it all, then I don't think you can hold it against the executive who is selling. Maybe he's buying a house, maybe he's taking the family on vacation, maybe he's diversifying his own personal investment portfolio. However, if he is selling huge chunks then that is indeed a huge warning sign.
Im kind of diversified which actually makes me lazy. I probably should do some homework but I haven't dug in to this. Did Ed Wright sell a massive chunk of his holdings? Sometimes they have structured blind sales arrangements, where they can't control when options convert, shares get bought, it's automatically done and that itself keeps regulators and investors happy. I wonder if this was in play or not.
Another concern is the reporting. A roll up can be hard to follow accounting wise. The story about reporting 100% of revenues when they only have 51% stake is a little questionable in my view. Unethical Managements muddy up the accounting statement waters by hiding behind accounting standards, or pointing to alternative reporting conventions, use way too many footnotes, etc, etc, blah, blah, blah. Good businesses dont need accounting tricks and good managements steer clear of being perceived as using these tricks, let alone actually use them. At a certain point if its too hard to figure out the numbers its sometimes because a less than ethical management is making it hard to figure out. I would walk away if basic rules are broken in this regard.
let me know if you spot something!