I just heard about the company and have just started looking into it. I'm not an expert but I was concerned about the insider selling too. E-Trade Insider Activity says, "In the last 5 years there has not been an insider stock purchase at INVN." Although it was founded in 2003, it looks like it just went public in Nov 2011 so the 'last 5 years part' is a bit irrelevant. I WAS concerned that all of the stock options that are exercised are immediately sold, especially for the head honcho, Steven Nasiri, Founder, Chairman, CEO, President and Secretary, who seems to haven been exercising his stock options two or three times a week for several months. I was also a little leery because Yahoo! Finance has essentially no information on insider or institutional ownership in the key information section. I've never seen that for an American company. But in the insider transactions section I see that Mr. Nisiri owned 9 million shares in November 2011. I also noticed that all of the key executives have relatively low salaries, (compared to other key executives, not to plebes like me) so they may have good reason to be cashing in their shares. I was just paranoid enough that I went to the US Patent Office website and checked to make sure that Mr. Nasiri does indeed hold patents. He does, although not only in his name. There were two other little things that caught my eye. First in the cash flow sections for the last three years (all I have available) there are provisions for capital expenditures that are not reflected in an increase in size of the 'property, plant and equipment' category. That amounts to about 2 million dollars each year. I don't know what the explanation is. The other thing is that most, $77.6M, of the big jump in 'change in cash and cash equivalents' for the most recent annual report is from financing and yet they are said to have only $42K in debt. No doubt there's a bookkeeping answer for that. About the roller coaster ride, if you look at a P&F chart on INVN (e.g., at StockCharts.com) you'll see that the stock has been going down since March, with a peak of 22, a drop to 13.5, a bounce up to 18, down to 9.5, up to 12, back down to 9.5, up again to 14 and is now on its way down again. I'm only guessing but I suspect it's not done falling yet. I still have a sense that something isn't quite right here but I can't put my finger on anything. I'm tempted to put in an order somewhere between the present price and 9.5, probably much closer to the lower end. I have to keep reminding myself that good stocks are like buses: If you miss one, there will be another along soon. And you do have to make sure that the one you get on will take you where you want to go. Fool on! D
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