PayPal Execs Cashing Out

from the get-me-my-money dept

There is a general rule of thumb that if executives are selling their shares in a company, then you should probably be selling as well. Of course, there are a few exceptions, but it does seem a little alarming that PayPal top execs are selling significant portions of their holdings in a secondary offering. It's understandable to sell some shares for diversification purposes, but selling large percentages of your holdings certainly seems questionable.
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  • identicon
    Anonymous Coward, 12 Jun 2002 @ 4:10pm

    venture capitalists vs. entrenched interests

    Well, it's common knowledge that the working
    stiffs have to hold their stock for a certain
    amount of time, while the venture capitalists
    milk the IPO for all it's worth during the first
    few months/weeks of the offering.

    A secondary offering is much akin to a split.
    looking the the short, young chart for PayPal,
    it's clear that a split is not justified. So,
    the execs are doing the next best thing and
    attempting to leverage their shares.

    Given the most recent news, it's probably worth
    avoiding PayPal. I think there are enough
    institutions out to get it that PayPal won't
    survive in the long run.

    On the other hand, if the secondary offering
    sparks some optimism among investors, the you
    might be able to ride the execs coat tails, but
    at 17/1 P2E, the stock is a dog and will continue
    to be for quite a long time (unless something
    really revolutionary happens in the field of
    electronic payments)

    link to this | view in chronology ]


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