On November 30th, SIRT stock price began a steep decent after an equally sharp rise. I had suspected that a venture capital investor had decided to take some money off the table but the insider trading reports had yet to confirm this. Now it is clear. Polaris Venture Management Company, a venture capital firm and owner of over 3,000,000 shares, disposed of 1,000,000 shares on November 30th. Since the sale is listed as a non-open market transaction, I suspect that Polaris purchased a derivative from a dealer, probably a collar, and that the dealer dumped the underlying stock as part of its hedge. A zero cost collar would cap an investor's upside and place a floor on his downside at no cost to the investor. The dealer would need to sell stock to hedge, often without much regard for price.
SIRT is a stock that has a potentially fantastic future, however, until the visibility of its potential is confirmed investors can expect volatility, exciting up days and stomach turning downturns. Keep an even keel!!
Meanwhile, SIRT announced today that the National Institute of Aging (NIA) has selected one of its SIRT1 activators for an Interventions Testing Program to study the effects of SIRT1 activation on aging. More evidence of SIRT's clear leadership in this exciting field.
Do your own DD.
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