INFN executive purchases TODAY

I received an email alert after market close today.

There were 3 new SEC filings on change of beneficial ownership.

CEO Tom Fallon purchased 100,000 shares on the open market today. Average price: $11.9503. That is $1.2M of his own cash.

CFO Brad Feller purchased 25,000 shares today. Average price: $11.7547. That is just slightly south of $300K of his own cash.

President David Welch exercised an option to acquire 50,000 shares today. His cost was $2.00 per share, or $100K of his own cash.



So just for semantics purposes…

If INFN has around 141.42M shares on the public market, and we know someone bought 8.84% of the available shares (125k shares divided by 141,420,000 == 8.84; I didn’t even include the 50k options that were converted)… shouldn’t the price have gone UP today? Or was this an event that would have gone in as of close-of-market (and thus won’t reflect until tomorrow’s share price)??

CEO/CFO buying that many shares tells you one of maybe two things:

  1. The price is attractive, and they believe it’s temporarily low, so they want to profit.

  2. The price is falling fast, and they’re looking for ways to keep it from falling more, faster or further, so they buy to offset the sell volume.

Hard to know which is may be, but I’d love to know!

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Dang my stupid Windows calculator… as soon as I posted that (of course AFTER I hit submit) I did the sniff test and the math failed, so I did it by hand.

125,000 divided by 141,420,000 – 8.84__e-4, … which means move the decimal 4 points left… which is .000884%.__

Sorry. That’s not enough to move the needle either way. So nevermind on why it didn’t move the share price, but the motivation factors probably still hold.

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125K shares out of 141.42M is 0.0884%

Also, regarding #2, I don’t think I would plonk down $1.2M of my own money on something I knew was going to fail. That would be very silly indeed.

Also, keep in mind - these folks are awarded stock based compensation. They would have been awarded shares next year for meeting their goals and targets. Buying shares on the open market using money from my own income is a definitive statement.



I just checked the AH stock price. It jumped .48c. I think the “statement” is having its intended effect, at least in the short term.



I think the insider buying is a good sign, but then a again, I saw Richard Kinder buy a lot of KMI the last couple of years.