Insider Selling Peaks

[powayseller]

Insider Sales are at highest level since 1987

“Stock sales by America’s corporate chieftains exceeded purchases last month by the widest margin since 1987, suggesting they don’t share the confidence of investors who sent the Standard & Poor’s 500 Index to a six-year high.

Executives including Microsoft Corp.’s Bill Gates, Google Inc.’s Eric Schmidt and Kohl’s Corp.’s William Kellogg in aggregate sold $63.18 of shares for every $1 they bought in November, an analysis by Bloomberg of data from the Washington Service showed. That’s the highest since at least January 1987. ”

[poorgradstudent]

Yep, the market is overbought right now, by roughly 1-2%, but the specific companies listed are much more so. Google is WAY overvalued (classic great company, bad investment situation), Microsoft is coming off of a hot run, and by my valuations Kohls is also overpriced relative to the market as whole.

[sdrealtor]

Back in the mid-80’s, I was hanging out with my two best college friends doing things our parents wouldn’t approve of. On of my friends had inherited great wealth from his parents who bought IBM and never sold. To this day he still has it all and basically travels the world writing. I was lamenting my envy of his good fortune and wistfully hoping that someday I would find my IBM. The other friend, a comp sci major said there’s a little company that is going to change the world. It just went public, so buy their stock and never sell it. Fortunately I bought it. I did sell some several years ago but can’t imagine selling anymore anytime soon. Gotta love that MSFT!

[santeeman]

Maybe not for long, did you see this today…….

Stocks close lower ahead of November jobs report

By Tim Paradis
ASSOCIATED PRESS

2:11 p.m. December 7, 2006

NEW YORK – Stocks declined for a second straight session Thursday as Wall Street grew nervous ahead of the government’s November jobs creation report and its implications for the health of the overall economy.
The skittishness came despite upbeat news from the Labor Department, which said, as expected, that the number of newly laid off workers seeking unemployment benefits fell last week by the largest amount in six months. A spike in jobless claims last week stirred concern among investors that perhaps the economy was losing steam too quickly. Fluctuations tend to be wider around the holidays and Friday’s Labor Department report should provide some clarity about the labor market.

[powayseller]

The insiders are selling because they know this market is ready to take a nose dive. There are other indicators too. The Big Picture has some commentary lately about their leading indicators, which show that the market is ready to go down. Also something about the Dow Transports not going up with the Dow, and the bond market pricing in a recession. But there has been talk of manipulation too.

“There is no doubt that there is major manipulation going on holding this market up this high, so we are really fighting the house shorting this market.” – Chris Johnston’s blog, Monday.

Once the market starts to dive, I’m going to move more money into bear funds. My husband is going to put some into the inverse NASDAQ. In the short term, I think I can earn a better return on shorting the index funds, than on rising gold.

This market is a big fat bloated pig, as Don Harrold likes to say. I’m ready for the big drop – got my inverse index funds in place.

[powayseller]

Economic Storm Brewing in America

Insider selling is highest since records were kept 20 years ago. Ratio is 60:1

Eric Janszen:

“So perhaps we get a rapid “Ka” event after another quarter or two of the slow motion housing bubble meltdown. There will be a crisis soon. It is imminent. It will likely occur no later than the end of Q1 2007 but perhaps as soon as the end of the current quarter. Whatever USIPs and private equity firms are into, I’m getting out of. They will soon all be selling at the same time.”

[Author]

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