Payment Data Systems Inc (PYDS)

[Awesome A]

I believe that Mermelstein is correct on the theory (Hoch's selling is preapproved and preplanned and as such should not have a large impact the stock price).

However, the reality of the situation seems to support the statements of JaneyH and those who criticize Hoch's continuous selling.

No matter how you present the case and no matter what the reason, many investors (especially institutional investors) will shy away from a stock if an insider is selling shares - especially if such sales are at regular intervals.

This company is legitimately making a profit, cash flow is good to very good and it is in an industry where successful smaller businesses are taken over by larger competitors. All of this should be affecting the stock in a much more positive way. It is great that the stock is at a 52 week high - but it should be higher than $0.15. The huge headwind that the stock price faces is the insider selling.