Again, while there can be numerous reasons for an exercise and sale of stock well ahead of expiration (see above), we should ask ourselves, why would this executive exercise an option more than five years before the option expired? Why wouldn't the insider wait, especially if he had confidence in Grand Canyon's franchise and future revenue and profit growth? Isn't the exercise a vote of no confidence in the company's future?
Inquiring minds want to know!
At the time of publication, Kass was short LOPE.
Reinstating Goldman Short
Originally published on Thursday, Feb. 28 at 10:12 a.m. EST.
- UBS sees headwinds.
Why I Sold Facebook
Originally published on Wednesday, Feb. 27 at 10:26 a.m. EST.
- BTIG's downgrade made some salient points.
- 2013 sales and profits will miss consensus, as desktop ad revenue peaks and mobile growth is not rapid enough.
- 2014 looks worse, and below-consensus results are expected.
- Valuation, at 17 times 2014 EBITDA and 45 times free cash flow, is full and vulnerable to misses to consensus.
- an article in The Wall Street Journal that suggests Twitter is monetizing better than Facebook; and
- the buy on rebalance today is less than previously thought.
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