Insider Share SalesGood Day Everyone,
I've been reading many posts regarding company insiders selling shares over the past number of months. I have always had issues with people (largely short sellers) posting speculative comments about these sales being a significant concern.
The reality is that there are many justifiable reasons why insiders sell shares, some of which are not known to the public but are as follows:
1. Source of income as non-revenue generating companies often can only compensate senior officers through share issuance/warrants. This is often the case with companies in the GROWTH stage;
2. Income tax obligations as described in previous posts;
3. Personal/family financial obligations.
Bottom line is that it is NOT necessarily indicative of problems within a company. Also consider this fact. If, as some short sellers allege, company insiders are aware of material non-public information and that the company will imminently report such negative news, they would be committing a regulatory and criminal offence by selling shares in said manner, that is called illicit insider trading. Does anyone of sane mind actually believe that Don would be so idiotic to do such a thing a few weeks before releasing production update news?
Bottom line. Don't let the fear mongers who claim to be market knowledgeable convince you to panic and sell your shares. They show up and spread doom and gloom scenarios when the stock retraces and disappear when the stock moves higher. Their actions should make it clear how their thesis lacks credibility.
Long and strong.
Carter