There are fewer things that make Wall Streeters more nervous than when an insider sells. What do they know that you don’t. Better said, if the stock were worthwhile long term, why would they dump it? That’s depressing. Okay, add insult to injury: What does it say when an insider can’t unload his stock, i.e. what does it say when the marketplace doesn’t want it either? Arrrgh.
That in mind, 111 Board Director Glenn Greene has been vocal about wanting outta here. He’s had his condo on the market now for 130 odd days and counting. It’s become a running joke at board meetings. But regrettably, apparently no one wants it. Here we examine what that means, especially to the rest of us stockholders.
Before we do that, let’s be absolutely clear: “Insider trading” is a term that most investors associate with illegal conduct. Illegal insider trading refers generally to buying or selling a security, in breach of a fiduciary duty, while in possession of material, nonpublic information about the security. MAKE NOTE: that ain’t this. Actually, we are nowhere near that universe. What we are referring to is totally legal. Well, at least with what we know.
So here’s what we know:
– Last July, Greene listed his place with 111 real estate sharecropper and board insider, Richard Evans (MLS #08682109).
– No takers, last month Greene lowered his asking price.
– Now we’re 130 days out and still… nothing. Keep in mind, the 12-month average for M-T (market time) is 55 days.
Of course, one would expect a Winter sales slow down. But Greene, a finance guy, in the know, i.e. “insider,” surely would have the edge as to aligning price with marketplace demand. Still something is apparently out of sync. Is he asking for too much ($569,000)? Or, can the issue be found in what he’s been saying for months? Frankly, has Greene peed in his own bathtub?
9/12 – “[In light of our debt] when will we [the board] stop spending copious amount of money?”
10/21 – “We [the board] are spending way too much time on a budget that’s status quo, but hey, I’m moving.”
11/16 – “There’s lots of fat in this  budget.”
Also, there’s the elephant he’s kept quiet about. Greene is presently a defendant in two lawsuits brought by homeowners against the board.
It all reminds one of the old saw: “If your worst enemy is in Philadelphia and your best friend is in Hell, help the poor bastard get out of Philadelphia first.” A more poignant expression of that is in the recently released book, “Escaping Condo Jail.” The one thing worst that a bad situation is one you’re stuck in.
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STORY UPDATE 1/15/15: After 174 days on the market, 14C was delisted.