Hulbert on insider selling here -

Discussion in 'Trading' started by blackchip, Nov 21, 2007.

  1. Or lack thereof.

    What do you make of this?

    "...The verdict?
    It turns out that insiders in recent weeks have dramatically cut back the pace of their selling. In the Vickers Weekly Insider Report published Monday, Argus Research reported that in the week ended Friday, the average insider sold just 1.68 shares for every one share that he bought. That's well below the historical average for this ratio, and well below where the ratio stood as recently as early November, when it stood at 3.04-to-1.
    This is good news for the bulls. After all, if insiders did not believe that their companies' stocks would soon go back up, they would have reacted to the recent decline by immediately selling. That they did not must mean those shares will recover relatively quickly.
    To be bearish in the face of this, you therefore must believe that you will be right and insiders wrong. That strikes me as a low-probability bet."
  2. It is entirely possible that they have sold out to the max already. Nothing left to go...

    Or, they know something we don't.
  3. Possible. The thing that gets me is that the next move seems so obvious on the charts. Too obvious and too profitable if it pans out. Might be showing rags and holding a pair of bullets.


  4. sounds like you are long maybe?
  5. LOL. Got any insightful comments on the article chief?

    How about your prediction for the next move?

    Inquiring minds want to know... :D

  6. I could care less about the story....I think everyone is long the "nifty 5 or 6". they get crushed, so do you all.
  7. LOL. Sorry sad sack, you lose.

    But really, thanks for the useless kvetching. No really.

    Stop by again sometime when you have something intelligent to contribute. :D

  8. maolman


    Hmmnn. That's just a ratio. :confused:

    By itself, it says NOTHING! :(

    I want to know what change in VOLUME of traded shares it took to achieve this ratio, and in what DIRECTION that volume moved. Otherwise, it's USELESS.

    If insider PURCHASES increased enough to lower the ratio, then it WOULD be stupid to be bearish in the face of this.

    However, if simply because we are nearing the end of the tax year and all of the insiders now have sold all the shares they feel, for tax purposes, are necessary to bring their portfolios into proper balance, then, in view of the current financial mess, the roiling market and extreme volatility, it might be OK to be a bear :D

    THAT is the part of the news that was WITHHELD!


    Mike Collier
    Oak Harbor, WA
  9. Looks like we're all going to blow up our accounts here folks. Frank will be the last man standing!