I had mentioned before, a time or three, that I held a full position in INFN. I began buying INFN in November through December, 2014. Share price varied between $14/15. The share price was on an upswing. Color me happy. Then…a funny thing happened. In late April, I began seeing notices of heavy insider selling. I did some research. True enough, several insiders were selling a significant number of shares in the $18/19 range.
Just to be clear, I’m not one to pay much heed to insider sales (significant insider buys ALWAYS tweak my interest). What was happening with the INFN insider trades was that several key insiders were selling significant majorities of their shares. WTF!?! Granted, I get that INFN is overly generous with stock options. Many option grants have since been doled out in May. What I didn’t get (still don’t) is why insiders would sell so many of their shares if the company was on the cusp of significant growth? I don’t get it. Still don’t get it after rooting around the Interwebs for many hours/days on end.
Bottom line? I harvested some profits, selling shares ~$19. Roughly a 30% return in just 6 months. I kept half my position…hoping for the best…trying to understand.
Here’s the long and short of it: The share price appreciated > 100% in just 52-weeks. Today, short interest hovers around 10% and analyst opinions are all over the map from outright SELL! to outright BUY!
This one’s a bit tricksy.