Q: A recent article stated that there has been significant insider selling over the past three months and that shareholders have been diluted over the past year. On the other hand earnings are forecast to grow by 68% per year. Could you comment on these statements as well as the status of its balance sheet and strength of management. Thanks.
Insiders own 11%. Because the company has done some financings, their position does get diluted with deals. We see a net 10% (not percentage point) change in insider holdings over SIX months. We like management which is why we liked the stock in the first place. The sector has had its ups and downs but we like the acquisitions the company is making and it has a long term approach. It had $52M cash and about $240M in debt as of the last statement (Sept 30). The stock has had a good January bounce and we do expect good earnings growth this year.