Wednesday night while doing research I noticed a new form 4 on Glu Mobile (Nasdaq:GLUU) and confirmed huge insider buying.
“Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.” ~ Peter Lynch
Director Nada Hany’s fund picked up just shy of $10 million in stock at an average of $3.05 across the last 3 days.
This guy is the director of GLUU obviously but also a controlling member of the fund which now owns $17 million in GLUU stock.
This is a good positive note for GLUU when the director steps in and buys that much, rest assured he “checked out” the condition of GLUU with management before he bought it.
They now own almost 9% of the company and they were trying to hide the buying too. Insiders have 3 days to file the buys/sells so they started loading 3 days ago and filed tonight just before the after hours close.
Usually a fund like this won’t want more than 10%+ ownership because it puts them in a different league and sales are more regulated. A less than 10% holder can do whatever they want. What this says to me is they are all in with that $10 million in new stock at an average of $3.05.
Bottom line is this, they see value at this price and given what I know about GLUU, it’s enough for me to get in the trade and I will buy more.
For you free clients, if this does take off into next week, then you better promise to join my NL!
Discliamer: I am long GLUU.