brombonz

Heelys Tanks On Dilution Concerns

"Mega-DILUTION?" (Emphasis mine.)

If these shares are as described, they are SECONDARY shares, already outstanding. There will simply be a transfer of ownership. An indication of weakness based on insider selling? Very likely, allthough I've seen this apparent signal err: prime example -- one of the three founding Marciano brothers of Guess?, Inc., filed a shelf offering to sell ALL of his shares when the stock price was about $2 (adjusted for a 2:1 split). The stock never looked back and so far has topped out over $43 . One difference, GES was coming off long-term poor performance that turned out to be a bottom.

My idea of "Seeking Alpha" contributors is that they are at least a little more sophisticated than this.