Head Lie: CNN Says Insiders On Stock Buying Spree
by Mac Slavo: Rise
of the Mob: Wisconsin Fairgoers Attacked, Violently Beaten
that Insiders (corporate CEOs, officers, and board members) have
gone on a stock market shopping spree:
go on buying spree
insiders are rushing to buy shares in their companies, suggesting
that they think the recent sell-off in their stocks is overdone.
a lot of buying and its widespread across all market cap
groups and all sectors, said Ben Silverman, director of
research at InsiderScore.com.
firm TrimTabs calculates that insiders have already bought $861
million so far in August, the most since just over $1 billion
of insider purchases back in March 2009. Thats significant
since its the month in which stocks hit their lows during
the last recession and started two years of steady gains.
only CNN, but all of the mainstream financial news channels and
web sites that are reporting the sudden jump in insider buying.
Curiously, none of the reports we read had any data whatsoever on
the other side of the story insider selling.
They were touting only the buy side of the data and pointing to
this data as a sign that the stock market has bottomed.
however, insiders are still selling more than they are buying, as
evidenced by the insider seller/buyer ratio below:
the chart above, insiders are still selling at a rate of 4.85 sellers
to 1 buyer.
While we may
have reached the lowest buyer/seller ratio of the last two years,
the data does not necessarily imply weve reached a market
bottom, as some analysts would have us believe. Insiders may be
buying up their company stock at a faster pace, but looking at the
last 1224 months of insider data suggests that insiders have
had serious misgivings about the health of their companies, financial
markets, and the economy as a whole.
curious to know what, if anything, has changed in terms of underlying
fundamentals since July (or any month depicted in the chart above)
that has changed the overall outlook for our economy and financial
volatile and unpredictable as the financial markets are, we would
strongly suggest to those of our readers that are considering purchasing
stocks to, well, reconsider.
a reason stocks have collapsed around the world and it has to do
with a serious loss of confidence in the strength of the so-called
economic recovery and governments ability to manage
this crisis going forward.
is it that insiders are seeing here, other than short-term profits
if the markets bounce?
got rising unemployment, record-levels of national debt, and consumer
confidence has, by all accounts, completely crashed in the latest
CNN et. al.
failed to mention those tidbits in their story, and it makes us
buyer beware. We might be getting played (again).
from SHTF Plan.
Slavo [send him mail] is a
small business owner and independent investor.
© 2011 Mac Slavo
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