I believe all management personnel have a ton of shares each. I get
their updates via email daily and when they sell, it is thousands of
shares each. It seems they are the only ones making money on this
stock and they have a lot of shares left to sell. They are certainly
getting rich off of it. They did, after all, form the company, so one
could expect some of this to happen.
I bought at the IPO and wanted to sell at Christmas time that year
when Cramer said to Sell, Sell, Sell, but my broker's answering
machine was full. He called me back after the Christmas season, but
it was too late by then. Cramer had the CEO on his show later and
asked about the amount of stock they had and if they were going to
sell it. If I remember correctly, the answer wasn't very positive and
I think Cramer has never given it a go since then. Because of its
advantages to the video market, you'd think that this stock would
soar, but it is probably like you said, their management is showing
the investor that they are not strong on the future of this company.
There is an old saying, that if management doesn't want their own
stock, who else will? Maybe their CEO can shed some light on this for
us investors by sending out a nice letter to all who are on record to
report why they sell so many shares. It didn't seem like Cramer was
very impressed with the head of the company's management team during
that show, but of course, that is only my opinion and it has been a
long time since.
I have since bought more shares at $12.15 and $13. My even point is
still $17.50. Being new to his show, I wish I would have waited and
did more home work with this stock before getting into it. I will
have to keep buying on these dips until my break even price is down
around the $15.00 mark and hope the stock can break out of the $15.00
range. Cramer says, Bears make money, Bulls make money, Hogs get
slaughtered. I got piggish by not paying close enough attention to
the market at that time and got slaughtered for my lack of effort.
Maybe by dollar cost averaging, I can still make a silk purse out of a
pig's ear.
Anyway, good luck investing.
khalo wrote:
> A Jerome Vashisht Rota who is a DIVX Director sells a huge amounts of
> stock on the begining of every month, does he know what he is doing to
> the stock?? where is his beleif system.