On the Date Restricted Shares of Demand Media Unlock & The Market Sinks, Demand Is Actually Up
Shares that insiders receive typically have a 6 month lock up meaning none can be traded until the 6 month period is up.
Meaning that today would be the 1st day that the insider shares can be sold.
Well the stock market is having a horrible day down as of time of publication around 175 points on the Dow and a whopping 68 points on the NASDAQ and shares of Demand Media are actually up .01.
Lets face it a lot of very smart people are insiders at Demand.
All public record.
Just the Directors and Executive Officers which number 16 people own as a group almost 58 Million shares
You do the math.
Its easy to say that insiders are going to dump the stock, but to whom.
The stock just doesn’t trade enough shares to allow for mass selling by the insiders and they are smart enough to know it.
Dump 5% of the shares to the market maker for whatever you can get and 95% of what you have left is devalued by a huge factor.
So at this level of trading activity insiders are forced to wait to sell.
Just my observations.
3;30 Update make: that was up, now down with the rest of the market, still just over 220,000 shares traded under the 3 month floating average, NASDAQ is now down 72