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Open market insider buy in XONE +6

11:33 26-Aug-15


We have what appears to be a sizeable open market insider buy of XONE from its President, Hans Sack, who purchased 33,000 shares at an average price of $6.41 to nearly quadruple his stake in the company.

Insider selling is just a common sense response to being compensated in stock, and thus occurs routinely.  By contrast, when an insider spends his own money to purchase stock, that can only be for one reason: because the purchaser thinks their is upside in the shares.  Clearly, given the average purchase price, Mr. Sack has already been proven right in the short term.  Nonetheless, company directors don't tend to trade their stocks for short term incremental gains, so I regard this as a fundamental positive for ExOne.

Date
 XONE Rebate Rate
26-AUG-15 57.62%
25-AUG-15 56.94%
24-AUG-15 56.94%
21-AUG-15 57.56%
20-AUG-15 58.94%
19-AUG-15 60.25%
18-AUG-15 60.31%
17-AUG-15 60.06%
14-AUG-15 59.94%
Furthermore, while nominal shorted shares have dropped over the past year, it remains high at over 30% of float, which would take more than 12 days to cover at average trade volumes.  While these figures are not always reliable, they are confirmed in this case by the rebate rate, which is still very high and beginning to rise again at over 57%, after bottoming slightly lower on August 24th, the date where Mr. Hans concluded his purchases.

XONE has certainly seen higher rates, and remains a speculative, dangerous investment until it can prove the ability to turn a profit.  Nonetheless, I see this as the surest sign we're likely to get of a long-sought bottom in the share price.  The company has consistently built and strategized for the long term.  Investors may wish to cautiously begin taking the same outlook.