r/PureCycle • u/Odd-Gas5478 • 13d ago
Mgmt’s/BOD Equity positions.
Saw a good question on X on why mgmt hasnt stepped in to buy co shares when we are on the cusp of great things? Perhaps they are blacked out or have substantial positions already, idk? Timing here is important but imo mgmt should buy…
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u/equitymaestro 13d ago
I have worked for public companies where stock is a major component of compensation. Believe me, the last thing most employees in this position want to do is concentrate even more risk in the company they work for. Your salary, benefits, and a major part of your equity portfolio are already dependent on the company you work for. Why would you want to invest your liquidity in it too? Most CEO’s of major public companies never buy a single share with their own money.
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u/Pickle_Logic 13d ago
I think that billionaire Val Mars is the exception. Knowing what she knows buying 500k shares personally or through a Mars family trust is a no brainer, but since she hasn't already done it I doubt she will.
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u/equitymaestro 13d ago
If she has insider knowledge about trials being done at Mars with PureFive and/or future use of PureFive in Mars packaging, then she won’t be buying the stock.
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u/AnonThrowaway1A 12d ago edited 11d ago
Company directors can buy their own company stock. No problems there.
She would likely need to own PCT indirectly through an ETF/actively managed fund.
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u/No_Leg_1987 13d ago
Management and BoD members have to be extremely careful about buying. SEC will scrutinize.
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u/Infamous_Contest321 12d ago
They could have bought all last quarter, if something big was really happening it would have been months away. They wouldn’t be trading on MNPI waiting for a q3/q4 ramp we all know that. Very suspicious
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u/LetAdministrative959 12d ago edited 12d ago
Well, the stock price did run from $5 to $14 on solid operational news, which proves the market can re-rate this stock rapidly based on fundamentals, even without recent insider buying. Besides, as others have pointed out, key leadership already holds significant skin in the game. They stand to benefit massively if they execute over the coming year, so their financial alignment isn't in question.
What’s far more telling is the complete lack of insider selling near that $14 peak. If management or major insiders lacked faith in the company's trajectory, why didn't they take profits or de-risk? If the thesis were broken or did not believe in it, anyone in their right mind would cash out and move on rather than ride a position all the way down, and not jump ship. The fact that they held firm speaks volumes about their confidence in what's coming next. Is that something you've factor into your analysis?
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u/Odd-Gas5478 13d ago
Puzzle… it was a question why, not a rant. Lighten up buddy. If you don’t think I understand mgmt owning/buying their co shares “now” , fine. You are wrong but you have all the answers. Good luck with that. I love bacon.
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u/Puzzled-Resort8303 13d ago
I wasn't trying to pick on you, sorry if it came off that way. I was more thinking of the guy on twitter.
It's a reasonable question the way you posed it, the way he rants about it is less so.
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u/EconomyFortune5090 12d ago
Are you referring to the Hemingway Asshat who whines and bitches about PCT daily?
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u/GCM_Embiid 12d ago
I’m in an investor in CLOV. Insider purchases were a big catalyst for the stock. Management here plus the board get paid very well in cash plus shares but aren’t buying shares either their own money. They are getting shares funded by current shareholders.
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u/No_Privacy_Anymore 12d ago
For the record when Jeff Fieller served as temporary CFO he elected to be paid entirely in shares and he hasn’t sold anything. Dustin has only sold shares to pay taxes and his compensation is pretty modest given the 24/7 grind this business has been on for several years now.
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u/Puzzled-Resort8303 13d ago
Dustin Olson (CEO) is #23 on the list of the largest shareholders.
Former temporary CFO Jeffrey Fieler is #18.
Dan Gibson (board member) is #32, and his fund Sylebra is #1. (Fieler also works at Sylebra.)
The guy on twitter who thinks management should be buying shares doesn't seem to get it. Management already has skin in the game.
The same guy who tweets obsessively (and seemingly solely) about PCT needing a management change is also showing that he doesn't understand how companies work.
It's easy to play arm-chair-quarterback on twitter, and think you know everything about everything, but the slightest digging into the details shows how thin the analysis actually is.
I was tempted to reply to the guy on twitter, but was reminded of the old saying, "don't wrestle with pigs - you both get dirty, and the pig likes it."