"Get your facts first, and then you can distort them as much as you please." (Mark Twain)
Tuesday, December 14, 2004
Selling of shares by insiders — which includes executives and other top officers and directors at a company — has been rampant in recent months, with sales rising to their highest level in more than four years in November.
While no one can pinpoint an exact reason for that run-up, the implication is troubling since big insider selling is often considered bearish for the overall market as well as for individual stocks....
Some $6.6 billion in insider stock sales took place last month, the highest level since the $7.7 billion in sales tallied in August 2000, according to Thomson. Contrast that with the $144 million worth of stock that was bought by insiders last month.
Link via Steve Soto at the Left Coaster. Steve notes that this news is coming at a bit of an awkward time, what with the government proposing that we choose this moment to take America's retirement funds out of stodgy old government bonds, and invest them instead in the very equities currently being dumped be insiders.
Update 12/15/2005: Corrected quote by adding ellipsis.