The Globe and Mail reports in its Tuesday edition that investors tend to react badly when company founders sell stock. The Globe's Andrew Willis writes that history shows selling by a company's creator is a lousy predictor of future performance. In the past, avoiding an investment because an entrepreneur exited would have meant missing out on home-run stock plays. One example is Magna, which went on a tear after awarding an expensive parting gift to Frank Stronach. Fashion retailer Groupe Dynamite's $300-million recent initial public offering made headlines as the first significant Toronto IPO in more than a year. Founder Andrew Lutfy received all the proceeds of the offering. When the stock fell 5 per cent in its debut, it raised questions about investor interest in future IPOs. Despite his sizable withdrawal, Mr. Lutfy's fortune remains tied to Groupe Dynamite. He still owns a $1.8-billion stake in the retailer, a reassuring degree of alignment with investors. Groupe Dynamite tanked post-IPO because, with hindsight, it is clear an underwriting group led by Goldman Sachs priced the IPO too aggressively. Since the IPO, Groupe Dynamite released stronger-than-expected financial results, which gave the stock a boost.