Insider Trading - It is an offence under the Corporations Act to trade using inside information, or communicate inside information to others who will, or are likely to, trade on the inside information. The prosecution does not require proof that you knew the information was not available and may have a material effect, it merely requires that a reasonable person would have that belief.
So people here are trying to tell me Hrdlyka jumps from an $8mil a year job into CEO of a2MC for a lot less money, is giving a share bonus to compensate, and now a few months later the company is in trouble so she sells knowing the penalties for insider trading? Wow, just wow. You would probably have more luck convincing me the world is flat. Why would she change companies in the first place? Or risk her career? Such utter nonsense.
Do you really think the Chinese will stop buying A2 IF because the CEO sold some shares? Do you think the demand isn't there because look at the Stacking Shelves thread and tell me how many tins you can count. So what do people think is going to happen when Pokeno is built and we increase production when there is such high demand? Or in the US where we are getting more and more news of expansion like in Walmart and Costco? Or when a canning facility is announced in the US? Or we push further into the UK and other markets? Do you honestly think the fundamentals analysis has changed? Of course it hasn't.
Hrdlicka selling shares - If people bothered to read the announcement it clearly says:
The above-mentioned Ordinary Shares were received by Ms Hrdlicka on the automatic exercise of time-based rights in the Company (such time-based rights having been granted to Ms Hrdlicka as a one-off transition benefit compensating her for the forfeiture of incentive entitlements from her former employer as a result of her resignation to take up employment with the Company). The sale of the above-mentioned Ordinary Shares has been made by Ms Hrdlicka in order to: (i) fund the tax obligations relating to the recent automatic exercise of timebased rights; and (ii) fund commitments made by Ms Hrdlicka prior to her taking up employment with the Company. Ms Hrdlicka retains a relevant interest in Time-Based Rights and Performance Rights (as noted on the previous page).
So let's look at this. It says that is was a one-off transition benefit due to compensate incentive entitlements when she was working at Jetstar. So before we get all slanderous and join the mob mentality of internet bullies; maybe people should have a read and understand this announcement first. It is no more than her cashing in her sign on bonus. Besides when is a good time for a CEO to sell? I would prefer now rather than around the AGM. Even if she does it in two or three years people would still complain.
She brings a lot to the company and has already pushed a2MC further into the US whilst we wait for Pokeno to be built. To the market what she brings as far as growth to the company will be far more important than if she sells some shares, which is completely irrelevant in the long term. We had the same discussions when Babidge sold some shares. How many people care about that now? Should we have sacked him? Of course not. CEO's sell shares all the time, they just have to announce it to offer transparency to the market. If people went into a spiral whenever it happened then companies simply wouldn't offer management shares. So she sold some shares because she had other financial commitments which the board were aware of. They clearly announced it was a sign on bonus when they announced she was going to be the new CEO. Unfortunately some holders didn't understand it and went into a meltdown which, although hilarious, gave the downrampers the fuel they needed.
Psychology - So for those wondering what the future holds we can sum up that it is highly doubtful that we have any bad news on the horizon otherwise the CEO would not have sold due to insider trading. We also know that she was given the shares as a sign on bonus compensating her for missed entitlements from her previous job, so it is not overly surprising that she sold them as she had prior financial commitments. We know the fundamentals have not changed and the company has enormous growth potential. That is what matters.
People want you to sell so they can buy your shares at a cheaper price before the AGM. Sure the SP may get the wobbles next week but where will it be after the AGM? Or in a year? Or two years? Give into your emotions and fears and you will regret it. For me absolutely nothing has changed, I still have complete confidence in Hrdlicka to increase growth and I look forward to the AGM in November.
So, first of all, let me assert my firm belief that the only thing we have to fear is fear itself — nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance. - Franklin D Roosevelt.
and went into a meltdown which, although hilarious, gave the downrampers the fuel they needed.
(20min delay)
