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. Read the full article on Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details.