INSIDER SELLING SOARS TO 2010 HIGH

[AllentownJake]

Insider selling soared 17% for the week ending February 20th and hit a new 2010 high. Total buying also picked up, but remains near historically low levels. Total selling reached $956MM while buying totaled just $96.3MM. Insider buying has been unusually low throughout the rally as economic fundamentals remain questionable. Recent signs of recovery have done little to encourage insiders to invest their personal dollars in their own companies.

There were no notable purchases this week. On the sell side, large sales from CFO’s are also interesting. In this week’s report we saw large sales from the CFOs of Netflix and Walter’s Industries. Arguably, there is no one more familiar with corporate financial condition than the CFO so we always take notice of insider sales by CFO’s. All notable sales are attached:

http://pragcap.com/insider-selling-soars-to-2010-high

[dysfunctional press]

1. hmmm...think that they might know of something...not good...on the horizon...?

naw...that can't be it.

[AllentownJake]

2. They are also excercising less options

Which kind of makes me smile a bit because that means at least they have lost some money the fucking bastards.

If they were issued an option at a strike price and the option is higher than the market price you obviously don't take that transaction.

[dysfunctional press]

3. unless maybe you need to show a loss for taxes...

or just REALLY need the cash.

[BadgerKid]

4. The better case is when they BUY.

Sometimes it is a simple matter of personal reasons for selling (kid's tuition, alimony, etc.).

[AllentownJake]

6. These are insiders

They can sell $40,000 worth of stock and it won't even be noticed.

I doubt there was 987 million worth of divorces.

[dysfunctional press]

8. not really.

if you're on a ship, and see all the rats scurrying away...you might want to take notice.

[TexasObserver]

5. When the insiders are selling and bears are 90% of the trading ...

Not good.

[AllentownJake]

7. Glad to see you see what I see

that means I'm not crazy.

[Progressive_In_NC]

9. And citibank says they may not honor withdrawal requests for 7 days

These things all point to something coming down the line, and I just can quite get my mind around it. Insiders are cashing out, and banks are putting rules in place to keep people away from their cash.

I don't like it one bit.