Wednesday, August 31, 2016

Some Times You Have To Dig

Digging For Info

I was reading a short blurb about UTHR yesterday
Why UTHR Trades at Lower Multiples Compared to Its Peers

I was expecting some great insight. But all I found was this:

The sale of a substantial number of United Therapeutics’ shares by insiders can be considered a guiding influence on the company’s share price and valuation multiples. 

Ok.  I am not crazy about insider sales.  So I looked further.  The CEO has sold quite a few shares. In fact, Yahoo Finance says she only has 400 shares left. That seemed to me a concern

Has her selling caused the lowered valuation?  Does she really have 400 shares left? Enquiring minds want to know!  First, I looked over time. She has been selling a couple thousand shares a month for several years.  I think it is hard to make a case that their recent "cheapness" is due to her selling as it has been ongoing.

Then, how can she just have 400 shares yet be selling over 1,000 every month? Is dark magic at play?  I went to Sec.Gov and checked her form 4.  It shows that while she personally only has the 400 shares, she controls a trust of over 600,000 shares!


That seems good to know.  So she has over $76 million of direct interest in UTHR doing well.  I had tried to find this in several spots on the internet, but had to go to the source documents.  I feel better now.

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