Fitbit: Avoid The Sector With Founders Cashing Out
- Fitbit prices the secondary offering at a substantially lower price.
- Fossil buys competition Misfit for a relatively small valuation.
- The founders of the sector companies are all dumping stock into weakness providing a clear warning sign on valuations.
After a strong Q3 and promising guidance for the important shopping season, Fitbit (NYSE:FIT) dropped a bomb on the market with a proposed large secondary offering. Not surprising, the stock plunged during a weak stock market heading into the offering.
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