On March 30th, CEO Robert Greenberg sold 44,900 shares for $1,526,151.

On March 29th, CEO Robert Greenberg sold 37,400 shares for $1,280,950.

On March 26th, CEO Robert Greenberg sold 44,100 shares for $1,548,351.

On March 23rd, CEO Robert Greenberg sold 50,000 shares for $1,775,000.

On March 22nd, CEO Robert Greenberg sold 250,000 shares for $8,820,000.

On March 21st, CEO Robert Greenberg sold 100,000 shares for $3,510,000.

I could keep going back to December, when he sold $20 million worth of stock, but I don't want to bore you. I also don't know when these ads started running. But, unless they are brand new, there is a chance that Skechers was airing ads advertising its stock while the company's CEO was selling shares like they were going out of style, much like Robert Greenberg's first big hit, L.A. Gear, went out of style in the early 1990's. In 2003, Fortune Magazine wrote about the performance of L.A. Gear:

Started in 1983 by a former hairstylist and wig importer named Robert Greenberg... L.A. Gear began selling aerobics shoes just as the exercise fad took off. By 1990 it was doing $820 million in sales... L.A. Gear's stock, which started trading at $3 in 1986, made it up to $50 in 1990. Yet it all came undone almost as quickly. The aerobics trend died out, and Greenberg couldn't come up with another hot-selling product. Facing a cash crunch, L.A. Gear posted one bad quarter after another. A low point came in December 1990, when a Marquette University basketball player stumbled to the floor--on national television--after one of his L.A. Gear high-tops fell apart. In a bid to save his company, Greenberg sold part of it to outsiders, who turned around and forced him out. After limping along for another six years, L.A. Gear finally declared bankruptcy in 1998.

So Greenberg's last big success didn't end in success (and resulted in class-action lawsuit against the company accusing management of violating federal securities laws by issuing false, favorable public statements designed to pump up the price of its stock.).

While Skechers shareholders have been rewarded handsomely these past few years, if Greenberg's selling is any indication, the party could end soon. And if you are a shareholder of SKX, I think you need to ask yourself these questions:

• Is it ethical for the company to be promoting its stock through a television ad campaign while the company's founder and CEO is dumping tens of millions of dollars worth of stock?
• If Greenberg really does believe his company's shares are so undervalued that he should let millions of people know about the opportunity on television, why is he selling?
• As Warren Buffett has said, "Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it." If the company's stock is undervalued, why doesn't the company repurchase shares? Why doesn't Greenberg buy shares?

When evaluating potential investments, investors have to look at all the information and ask themselves "Does it make sense?" If it doesn't, it's probably an investment to avoid. And in the case of Skechers, there is a lot that doesn't seem to me to make much sense.

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