Microvision Inc (MVIS)

[Norm2]

Insider Trading

People on another MVIS board are talking about the apparent small amount of buying of the stock by employees.

Some years ago, an engineer working for Texas Gulf Sulfur [since absorbed, I believe] found a very rich deposit of sulfur. He made various tests and determined it was very large and of high quality.

He wrote up the details and submitted it to management. They were very pleased, gave him a bonus, and decided they would not make a public announcement of the find until the stockholders meeting which was upcoming.

The engineer bought some stock in the company.

After the news came out, the stock price did go up.
Subsequently, the SEC found out about his stock buy and charged him with trading on inside information, confiscated his profits, and fined him.

His case ultimately went all the way to the Supreme Court, the engineer saying he was just an employee, had nothing to say about what the company did.
But the Supreme Court upheld the SEC. They said his technical knowledge about the find was such that he knew or ought to have known it would have a significant effect on the price of the stock when it became public knowledge. So he could not legally buy it until the public had the information.

So if the MVIS device is really significantly better than the competition,
and the engineers know it, they could be doing insider trading by buying now.

A lttle "far out" as a hypothesis I admit. But possible,I think.

I have always felt bad about that poor TGS engineer. He did an excellent job for the company, and it cost him money.

Norman