Prepare for a discussion regarding a company and stock where emotions seem to always run wild……….
I know some die-hard FITX stock holders would rather spit in my face than read anything discussed in a negative light about Cen Biotech (FITX) or it’s CEO, Bill Chaaban. Note that I’m not trying to ruin your “hur-rah!” I’m just sorting through the developments and detailing what stands out and concerns me most.
I also have bad news for the FITX contenders. This isn’t a bash fest I’m about to unleash. At least, that’s not my intention.
One commonly voiced concern is that entrepreneurs should be rewarded for success and hard work, and while it’s not entirely fair to say “Bill Chaaban has accomplished nothing yet,” the long road toward FITX developing into a sustainable, productive business has only begun.
And Bill has been gradually unloading his FITX shares for a while now.
You can accept a popular rebuttal to this – that it’s smart for a CEO or any director to take some profits as the stock price rises, if for no other reason than to start gaining back some of his personal initial investment. Or also to liquidate some of the rewards for working hard and running the company.
So why exactly do many current FITX stock investors and also critics continue to voice their concern about Bill Chaaban selling his shares? Mainly because he specifically stated in the earlier stages of this year that he would not be selling.
Also, there’s some frustration that Cen Biotech still has not received the MMPR license from Health Canada and cannot begin medical marijuana production in Lakeshore, Ontario. Receiving the license has taken considerably longer than Bill and many investors anticipated.
But let’s go back to the insider selling topic. One of FITX’s most outspoken critics, Matt Finston, recently published a listing on iHub, detailing the dates in which Bill sold his shares. Pardon the far-from-perfect formatting, it still should be rather easy to interpret:
Here’s my latest concern and thought about these FITX stock dumps by the CEO. The current “high” valuation of the company is often critiqued, and I agree that the hype factor surrounding FITX is primarily responsible for this.
Maybe Bill strongly agrees with this as well. He’s been disposing since February 2014 from 0.0972, and now we see the latest series of selling in the 5 cent range. Bill has cooked up a lot of enthusiasm for long term investors over the past several months, but now his own holdings appear to be slowly dripping away.
I won’t draw out a long series of possible explanations for this, as those lists could run on forever if you have a powerful enough imagination. I just leave you with one gnawing question that I’ve been pondering for a while now:
If Bill Chaaban doesn’t prefer keeping FITX at these share prices, WHY should we?
Disclaimer: I have no positions in FITX stock, and quite frankly, would never even think about shorting it. Be very careful no matter what position you are inclined to take here.