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What: Shares of next-generation storage solution provider Fusion-io
So what: The company, which counts Apple
Now what: Among the selling stockholders is CEO David Flynn, who is selling about 880,000 of his 6.8 million shares, reducing his stake in the company from 8% to under 7%. As of last quarter, the company was sitting on almost $202 million in cash and equivalents, and the company has no clear need for additional capital since the uses outlined in the prospectus are rather generic and vague. I think this offering is primarily geared toward giving some early insiders a chance to cash out some of their holdings. They still hold big stakes, so they're not jumping ship, and I still like the disruptive potential that Fusion-io has.
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Fool contributor Evan Niu owns shares of Apple, but he holds no other position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool owns shares of Apple. Motley Fool newsletter services have recommended buying shares of Apple. Motley Fool newsletter services have recommended creating a bull call spread position in Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.