Monday, September 27, 2010

Sep 28: Are Insiders Buying Or Selling?

From Bloomberg:

From ZH:

Previous postings:

Top insider sale was Oracle. CEO disposing:

Next was Tiffany.

Next Medco: (both option exercise and sale)

And then Amazon, where the biggest chunk came from Senior VP who does the option exercise and sale.


bullbear said...

From your post:

Oracle ELJ: He exercised a share option of 10 million shares in Apr 2010 and sold these in Sept 2010. His pre and post-option exercise shares is about the same.

Tiffany MPW: Has sold his shares in Mar 2009, Jan 2010 and Sept 2010. In all, sold down 11.7% of his initial holding.

MHS DJP: Sold in Aug 2009 and Sept 22. He sold at the market price and then switched to exercise his share options at lower prices.

MHS KL: (Did something quite similar to MHS DJP)

Amazon VHB: Sold in Sept 2009 and Sept 2010 at market prices. Share options exercised at zero cost. Now holding slightly more shares (85,000) than before (80,000).


I would not get too excited over these insiders selling. There are many reasons for these. Some may not wish to be invested in their own company. Others may already have too many stocks in their own company. Perhaps, one of the above needed some money badly for various reasons.

What do they do with the money after selling their shares? Perhaps, some have reinvested into the stock market in other shares.

Eh.. it is interesting to highlight all these, but what is your point? :-)

bullbear said...

The net sum of all the buying and selling on the stock market is zero. The market doesn't notice who owns the shares.

The market goes up and down according to a combination of perceived value and prevailing mood.

In investing, a funny thing happens when prices are quoted minute-by-minute throughout the working day. People start to care less about the underlying value of the shares themselves and instead become fixated on where they think their prices are headed.

And because a stock's underlying value will ultimately be realised, the net effect for all investors of buying a stock above its value will be a loss, while the net effect for all investors of buying a stock below its value will be a gain.

We did have some fun here: