It was found that key executives including the president of Ecopro BM sold hundreds of millions of won in cash in succession this month. Even after the sale, the stock price continued to rise, but there is an analysis that overheating has reached its peak in that key executives are selling one after another.
According to the financial investment industry on the 26th, Choi Moon-ho, president of Ecopro BM, sold 2,800 shares of his company on the 13th at 279,929 won per share. The total amount cashed in is about 780 million won. The number of shares held was reduced from 124,828 to 122,028.
As Ecopro BM’s share price soared this year, it is interpreted that it started to realize profits. Riding on the secondary battery investment craze, Ecopro BM’s stock price rose more than 400% this year alone. On May 3, when the stock price was on the rise, CEO Choi also cashed in 2,000 shares, worth about 500 million won.
Not only CEO Choi, but also a number of key executives recently intensively sold Ecopro BM shares. The executive who sold the most was Choi Yoon-young, managing director in charge of development, who sold 4,000 shares at 301,000 won per share on the 18th. 12 billion in cash. Lee Jeong-il, managing director, also sold 2,000 shares at 282,000 won per share on the same day, realizing 564 million won in cash.
Vice President Eon-sik sold 900 shares on the 11th and 1200 shares on the 18th. 280,000 ~ 29 per weekBy selling for 10,000 won, a total of 620 million won was cashed out. On the 11th and 12th, Lee Gyeong-seop, managing director, sold a total of 1,000 shares of 500 shares. The sale price is 290 million won. Park Ji-young, managing director, also earned 280 million won by selling온라인바카라 a total of 1,000 shares of 500 shares on the 17th and 18th.
Last month, key executives continued to sell. After selling 340 shares on May 31, executive director Seo Jun-won sold an additional 2,000 shares on the 12th of last month. Executive director Kim Hong-gwan sold 880 shares on the 16th of last month and 1,800 shares in February.
In general, stock sales by executives are taken as a bad sign in the stock market. This is because, as they are well aware of the company’s internal circumstances and corporate value, they are likely to sell their stocks if they judge that the stock price has risen significantly compared to the corporate value. This means that there is a possibility that the current share price is much higher than the corporate value that internal executives and staff think.
It may be a stock sale in preparation for adverse events that may happen to the company internally. Trading using inside information is illegal, but EcoPro already has a precedent. Lee Dong-chae, chairman of Ecopro, was sentenced to two years in prison in the second trial in May and arrested in court on charges of trading using undisclosed information (violation of the Capital Market Act).
An official from Ecopro Group explained, “The reason why executives sold stocks at the same time was to pay off stock-collateralized loans as the protection bond for employee stocks was lifted.”
Coincidentally, the stock price soared immediately after the executives sold. Stock prices have soared 63% since the 17th as individual investors’ panic buying (fear buying) overlapped with foreign short cover (short selling purchase redemption). The closing price on the day was 455,000 won, which is higher than the selling price of 280,000 to 300,000 won by executives.
It is pointed out that the recent focus on Ecopro Group stocks is so serious that it is difficult for even executives who know the company well to estimate the appropriate corporate value. The stock market sees that stock prices are moving regardless of the appropriate corporate value while stocking a kind of meme .
The fact that key executives are selling one after another can be seen as the end of the overheating phase. Usually, after the sale of an executive, the share price often goes down.
Ecopro Group stocks, which continued to rise sharply, showed great volatility that day and faltered. Ecopro BM rose to a peak of 26.41% in the morning, but in the afternoon, it fell to minus (-) 7.25% during the intraday. In the end, the closing price was set at 455,000 won, down 7,000 won (1.52%) from the previous day. Ecopro also closed 5.03% lower than the previous day after directing a roller coaster market with a high of 19.03% and a low of -12.14 % during the day.