(Photo Credit - Imgur)
This might not seem significant to many readers, but investors in THC Biomed (CSE:THC) (OTC:THCBF) (FRA:TFHD) may find this story interesting. We watched a couple days ago as Mike Gorenstein, the CEO of Cronos Group, hosted an A.M.A. (ask me anything) on Reddit. A.M.A.s are a great opportunity for people to ask questions that they might not otherwise get answered. One of the first questions someone asked Gorenstein was: "What cars are parked in front of your head office?"
This question seems pointless at first, but upon further clarification, we see that this question is pretty important. Gorenstein answered "I don’t own a car. However, I usually ride to work in a 2013 Nissan Pathfinder that I share with our COO. I haven’t sold any shares and I’m actually quite happy with my uber app…easier to do work when someone else is driving :)"
Reddit users liked this answer. It gives investors a few different bullish signals:
Gorenstein is not a flashy guy out spending his investors money.
Gorenstein believes in the future of Cronos Group, and doesn't want to cash out early.
Gorenstein even works while he's on his way to and from work.
While we can't say for sure, it seems as if someone at THC Biomed doesn't share all of those beliefs with Cronos Group's Mike Gorenstein. According to a different thread on Reddit, someone has been seeing a white Ferrari outside of the THC Biomed offices quite a bit as of late.
As you can see from the picture above, the beautiful white Ferrari looks brand spankin' new. We can tell based on the car's styling and ventilation gills that this is Ferrari's newest 488 GTB rather than Ferrari's older 458 Italia. With a price tag of roughly $250,000 USD just to start, this car doesn't come cheap.
Whenever there's insider selling at a company, it signals that those closest to the information have a reason to believe that they should sell. When asked, executives and insiders will say that their selling has nothing to do with the company, but rather their daughter's art school tuition needed paying or something like that. In the case of THC Biomed, that doesn't seem to be the case.
Thankfully for non-insiders, there are required public filings for each time an insider buys or sells stock in their company. Looking through these filings, we can see that John Miller, the President and CEO of THC Biomed went on an insider selling spree starting in September and finally ending in December of 2016.
As of September of 2016, Miller owned 23,146,368 shares of THC Biomed. Following his selling spree, he ended December with 20,807,867 shares. That's 2,338,501 shares that Miller got rid of over the course of 3 months.
Back in September, shares of THC Biomed were trading well above $1 CAD per share. Now, shares of THC trading on the CSE are at $0.74 CAD. John Miller sure did manage to pick the high to sell his shares!
Investors Feel Screwed
While the CEO of THC Biomed has been selling off shares, many long-term believers in the company have held on hoping things would turn around. At the same time, there seems to be that shiny new Ferrari parked outside of the company's headquarters as of late.
Correlated? We tend to believe so. While we can't for sure say whether or not the car is his...the numbers certainly line up. Be sure to check out the insider transactions for yourself! FYI...Mr. Miller has not been the only insider selling shares.
Check out THC Biomed's marijuana stock profile here.
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