timwest
Short

Burlington Stores-BURL-Daily -Insider Selling & High Valuation

NYSE:BURL   BURLINGTON STORES INC
349 6 7
3 Insiders each just sold $550,000,000 worth of BURL after this long, persistent rally in BURL shares.

3.75 Billion Mkt Cap but only .084 Billion Free Cash Flow =2.2% return on investment

Ring the Bell - Time to Sell

I don't have a specific target in mind, just a lower price over time. I set a P&L for a short position and probably need to wait for a break under a previous day's low and then close under the highest range and THEN close under the 3-day range to set up the bearish trend from here. It's been such a long, persistent rally that anything is possible from here.

Please feel free to do more due diligence and explore why people would pay 50 times free cash flow for this company.

Thank you,

Tim 3:38PM Tuesday, January 27 2015
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Great, I like the huge volume explosion followed by a string of small range bars, and up bars closing on the middle or lower.
The last 6 bars have 3 inside/outside bars too.
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ucsgears PRO
2 years ago
http://www.finviz.com/insidertrading.ashx?oc=1585849&tc=2&b=2 ........ http://www.finviz.com/insidertrading.ashx?oc=1195007&tc=2&b=2 ............ http://www.finviz.com/insidertrading.ashx?oc=1213400&tc=2&b=2

Do you think, the shares were issued as an incentive program or so? I do not see any buy / option exercise. They have diluted 30-40 M of shares since May, each.
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timwest PRO ucsgears
2 years ago
Its worth looking into - I found the idea through Finviz today and reviewed those pages before I published the chart. If you can find any more information to filter out this trade, that would be great.
+1 Reply
baerrus PRO
2 years ago
Tim are you sure about $550M of insider sales? I did a quick lookup and only saw the last 3 insider sales adding up to roughly $2.6M.
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timwest PRO baerrus
2 years ago
If we found a typo on their website - then I can pull back my suggestion if that is the case. Thanks for the due diligence @baerrus!
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baerrus PRO timwest
2 years ago
finviz reports insiders own 2.6% of the stock now. In the last 6 month they divested 98%. I read it as if insiders collectively held ~ 5% 6 months ago. So yes, they could not have sold $550M in a 3.6B company. Some general observations - this chart looks very strong. It appears that company is hovering around breakeven EPS wise. That makes for very strong Quarter over Quarter and Y/Y comparisons. Say $0.02 over $0.01 per share - That is a 100% growth! Maybe that is the reason the stock is sticking to a straight line?
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