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The Sad Case of Bad Timing and Insider Selling
Insider selling can decimate a micro-cap stock. It can put the healthiest stock on its back and turn the most loyal investor against the perceived offender. It can turn love to hate, joy to anger, laughter to tears, and worst of all it can turn buyers into sellers and believers into short-sellers.
There is a time and a season for everything … For those forlorn souls who have positioned in Universal Guardian, NASDAQ OTC: UGHO, which I strongly encouraged only one blog ago, I pray thee stay in for the long-term, for the worst is over.
In my opinion, this wrecked ship of a stock has sunk as low as can it go. The CEO has sold approximately 166,000 shares over the last two months, but he is not the real culprit here, if there is a culprit. Michael Skellern founded the Company five years ago, invested hundreds of thousands of dollars of his own money, and in the early years went months at a time without a salary as he built UGHO one bullet at a time. I asked him why he sold. His answer was not of the complex sort: “I needed the money,” he said. He has on the other hand, chalked up ten consecutive quarters of revenue growth, reduced his SG&A, launched several new defense products and appears to be marching towards another record revenue quarter. Here the recent interview with him on RedChip Radio.
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