Hi DAN2016, I'm a fellow novice as well, with my only share...

Hi DAN2016, I'm a fellow novice as well, with my only share holding currently in KGN. I am looking into other shares however I am a strong believer of KGN and that's what compelled me to buy shares in them to begin with - I've always thought they'll be the next big thing.

From my limited experience, I think you acted too hastily anticipating a drop and you were trying to save yourself a few percent points rather than watching to see how the market reacts first. Unless you're a day trader I don't think you should concern yourself with a few percent points. Had you waited you would've seen the price never dipped more than ~2% below the $3 mark, with the seller activity not indicating a price crash at that point. So by being a bit more patient, you could've saved yourself selling out early. However I'm aware this doesn't apply universally as stocks can plummet in minutes, but KGN at least doesn't have a track record of that.

While seeing the directors sell shares definitely is never a comforting feeling, I think we have to put ourselves in their shoes and look more objectively at the matter. While most of us strongly believe Kogan will be worth far more than $3 a share in the near future, we also don't know what the directors personal diversification investment options are. The directors still own a huge stake in Kogan, I believe they only sold ~10% of their holdings. I imagine Ruslan Kogan - while wealthy, hasn't been personally banking huge money until more recently, unlike the CEO's of other major companies. He could have sold his shares given it was a good price and it allows him to diversify a bit in his personal investments - some of which maybe have better potential growth than Kogan but doesn't stop Kogan from being a good thing.

Without knowing Ruslan Kogan personally or having inside information on the company, we don't know whether or not him selling a small piece was a bad thing, at this point all we know is there's nothing publicly available to suggest it is a bad thing. Like usagi44 said, if he sells more shares I may start to get concerned. But at this point I don't think there's much harm in him selling some shares to put some money in his bank account to help secure his own personal future unrelated to kogan.com.

That's m y 2 cents anyway, take it as a grain of salt but just an alternative view. Oh and I refer only to Ruslan Kogan just because I can't remember the other directors name.