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20-01-2013, 12:00 PM
(This post was last modified: 20-01-2013, 03:15 PM by mrEngineer.)
I agree with you that investors may look at negatively as it is unusual for a company to sell its stake when it has not fully realize some of its investment.
However, in the fund business, sometimes one of the LPs may need urgent $ to realize some of their other commitments. If i never read the announcement wrongly, I take some comfort from that neither e chairman nor the founder sold their stakes. Secondly, I may worry a little more if the management decides to buy more before the financial results release as it may mean there may not be any positive surprise. If they sell and earnings are poor, they might be subjected to insider trading?
Hopefully this event will turn a buying opportunity for me.
However, in the fund business, sometimes one of the LPs may need urgent $ to realize some of their other commitments. If i never read the announcement wrongly, I take some comfort from that neither e chairman nor the founder sold their stakes. Secondly, I may worry a little more if the management decides to buy more before the financial results release as it may mean there may not be any positive surprise. If they sell and earnings are poor, they might be subjected to insider trading?
Hopefully this event will turn a buying opportunity for me.