Q: Your previous answer was to sell this stock. I understand why and agree, but today I came across something that makes me think otherwise. Tal Hayek, ceo, just dropped one million of his own money on an insider public market buy. I see this alot with no fruition but this buy represent about one percent of the outstanding shares. Is this something that would make you change your mind to a hold.
5i Research Answer:
We like insider buying, and it is a better indicator than selling (there are many reasons to sell, but only one to buy). A buy case can be made for ILLM, and in fact every trade of course has a buyer who is not buying with the expectation to lose money. It is not without some potential. It has some cash and revenue growth. BUT...for us, its momentum is weak, it is too small to attract a lot of attention, and it continues to lose money while others in the sector are profitable. We just think there are better opportunities for risk capital.