SimpleTech Executives Adopt Rule 10b5-1 Trading Plans

Yahoo has the full details - STEC is the ticker symbol.

Yahoo story

The part that should set off alarm bells is "sales under will result in an increased number of shares in the company's public float and are expected to increase liquidity."

The CEO, President, and CFO have entered into plans to sell 5.4 million shares of their stock, there's only about 46 million outstanding and only 18 million shares floating.

The insiders are selling off 10% of the company to the public. Don't get me wrong - they have the right to diversify their personal holdings, but expanding the size of the float by a third is going to hurt this stock.

The insiders will still own about 50% of the outstanding stock, so they still have a lot of skin in the game, and you have to love a company with no debt.

It's probably a good stock for the long term, but I'd wait for the insiders to get out before buying.