China Energy Savings Technology (CESV)

[beigledog]

Technically it doesn't dilute the shares by Sun Li selling...and it was 2.2 milllion shares at $8.

All of this selling comes at an interesting time, since during the middle of the summer just after the stock split was announced I was calling the IR telling him that a split doesn't change the ability of mutual funds to buy the stock. It was all news to him and apparently to the company. I suggested two ways for funds to be able to buy CESV shares and take away some of the illiquidity of the stock...1) Either insiders had to sell or 2) They needed to issue more freely-tradable stock.

They went with #1, which doesn't look good in real time...and never will, but it's good long term for the company.