This page has been archived and commenting is disabled.

Insider Selling Outpaces Buying By Over 290-To-1 In Past Week

Tyler Durden's picture




 

According to Bloomberg,
for the week ended September 17, corporate insiders bought $1.4MM in
shares in a whopping 7 different companies. This was just marginally offset by sales of $441MM in 98 different companies, a ratio of 290 to 1 of stock notional sold to bought. But wait: this is GREAT NEWS: last week the ratio was 650 to 1! So this is a huge improvement and certainly yet another reason for today's rally, even though last week total notional sold was $332 million, or just under 25% lower, and sellers came in well lower at "just" 72. But who needs details when you have the Fed... Certain not retail, which has now pulled money out of domestic stock funds for 19 straight weeks. So for those wondering just who is orchestrating today's move higher, please let us know if you find out.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 09/20/2010 - 15:58 | 592855 pat53
pat53's picture

insiders, what the hell do they know ?

Mon, 09/20/2010 - 16:00 | 592857 NOTW777
NOTW777's picture

get while the gettin is good

Mon, 09/20/2010 - 16:01 | 592868 Racer
Racer's picture

Silly fools must be trading on fundamentals!

Mon, 09/20/2010 - 16:16 | 592920 JR
JR's picture

LOL. I had just taken a big gulp of expresso when I read that and I still can't swallow it...

Mon, 09/20/2010 - 16:21 | 592932 Goldilikes permabear
Goldilikes permabear's picture

woah big gulps of expresso at 3:15 eh?  alright...well....seeya later!

Mon, 09/20/2010 - 16:02 | 592873 iDealMeat
iDealMeat's picture

Tyler,  sorry for the OT:

 

Please post this link and copy the article on ZH before it goes away..

http://www.cnbc.com/id/39265847

UK Proposes All Paychecks Go to the State First

 

 

Should make for some pretty funny comments..

Mon, 09/20/2010 - 16:04 | 592883 goldmiddelfinger
goldmiddelfinger's picture

It's the Charlie Munger method of government

Mon, 09/20/2010 - 16:19 | 592919 Battleaxe
Battleaxe's picture

Yeah, we should suck it in, let the gov't have our paychecks, and be glad with whatever they decide to let us have of our money. It's the least we can do to keep our gov't from collapsing.

Mon, 09/20/2010 - 16:20 | 592930 Cognitive Dissonance
Cognitive Dissonance's picture

The ultimate in moral hazard, completely shielding the government from its (in)actions.

Mon, 09/20/2010 - 16:26 | 592948 BobPaulson
Mon, 09/20/2010 - 16:19 | 592929 JR
JR's picture

Very sobering. Just swallowed by expresso.

Mon, 09/20/2010 - 21:10 | 593672 undereducated
undereducated's picture

awesome

Mon, 09/20/2010 - 17:19 | 593146 michigan independant
michigan independant's picture

saved

Mon, 09/20/2010 - 17:50 | 593248 Rainman
Rainman's picture

What's really funny about this ?? The concept comes right out of the Fabian Socialist playbook.....except for the brazeness, which definetely is not the Fabian way. Ah yes...the State becomes the ultimate wealth distributor. It's gettin' closer every day. 

Mon, 09/20/2010 - 20:13 | 593546 nmewn
nmewn's picture

What could possibly go wrong.

Mon, 09/20/2010 - 16:03 | 592876 goldmiddelfinger
goldmiddelfinger's picture

Fools. Ever one uv em

Mon, 09/20/2010 - 16:05 | 592886 Cognitive Dissonance
Cognitive Dissonance's picture

While insider selling normally outpaces buying on average by 20 to 1, this is a bit extreme. Sounds like the rats are leaving in droves. Just in time for the AIA bullish reading to go through the roof.

Here kitty kitty kitty. Nice kitty cat.

Mon, 09/20/2010 - 16:36 | 592974 Assetman
Assetman's picture

Interestingly enough, were we not commenting on the extreme sells to buys this time last year???

The rats may be leaving a sinking ship... but it appears to be a slow leak.

Until it's not.

Mon, 09/20/2010 - 16:46 | 593011 Dismal Scientist
Dismal Scientist's picture

I seem to remember the insiders bought in droves in 2001. And were subsequently under water for quite a while. Am not trying to negate the meme on this site, I merely suggest that insider dealing can be wrong in both directions.

Having said that, I would be interested to know if insider selling carries more weight than insider buying in terms of being a reliable signal. I suspect it may well be...

Mon, 09/20/2010 - 17:35 | 593204 Lux Fiat
Lux Fiat's picture

Can't speak to which has more weight - buying or selling.  When looking at individual companies, I always look at insider transactions before pulling the trigger.  But it's also who is doing the buying or selling, and what is their track record.  There are some stocks where a few key insiders have had remarkable long-term timing - selling at major tops and buying at major bottoms.  Those guys I track on a regular basis.

Then again, I've passed on stocks where I loved the technicals, and fundies, but didn't like the massive high-level insider selling, only to have the suckers get buy out offers several weeks later.  C'est la vie.

Mon, 09/20/2010 - 16:05 | 592889 AccreditedEYE
AccreditedEYE's picture

Indeed. In fact, why do we need fundamentals and earnings? We can fabricate those. Jobs? The government provides everything... beats having to deal with annoying co-workers and actually having to produce anything. And last but certainly not least, real estate. Hell, demographics and supply/demand be damned!! Prop up this market so money can get back to work. Who cares about valuation on ANY asset when the Fed is buying! (all sarcasm)  I think I'm going to be sick.

Mon, 09/20/2010 - 16:05 | 592891 RobotTrader
RobotTrader's picture

Bears were destroyed today.

Prior highs have been cleared.

Breadth continues to improve, as the oil service stocks turned up today, more sectors are participating now.

Mon, 09/20/2010 - 16:07 | 592896 AccreditedEYE
AccreditedEYE's picture

At this point, they are going to run this bitch to the top of the flash crash. Then we'll see how strong this "rally" is Robo. (I didn't junk you)

Mon, 09/20/2010 - 16:32 | 592962 BlackChicken
BlackChicken's picture

Looks like a prime example of "chart painting" to me. 

Running this back to the top (before flash crash) levels is funny when you think about it; we have all these 'positive developments' (sarcasm on), and yet we are below the point where the FC started from.

I did not junk you either Robo...

Mon, 09/20/2010 - 16:08 | 592898 goldmiddelfinger
goldmiddelfinger's picture

X and IP did well today

Mon, 09/20/2010 - 16:14 | 592915 UncleBen
UncleBen's picture

Gargle my ball-sack, Robodoosh

Mon, 09/20/2010 - 16:22 | 592937 Cognitive Dissonance
Cognitive Dissonance's picture

Pictures please. Or at least links to pictures please. :>)

Mon, 09/20/2010 - 16:06 | 592894 Voodoo Economics
Voodoo Economics's picture

Contrarian indicator?  All retail (including insiders) are fleeing: ergo the fed steps in and the markets go higher!

Simple.

Mon, 09/20/2010 - 16:07 | 592897 Zexe
Zexe's picture

Tyler, i think you really owe an apology for discrediting Mr. Doug Kass. You see, his call has been right up until now and it certainly looks like we,ve seem the lows for the year. Who cares the Fed is the sole buyer.

Mon, 09/20/2010 - 16:09 | 592900 AccreditedEYE
AccreditedEYE's picture

I apologize. (I made fun of his BAC & market call. I am eating crow today) Fuck!

Mon, 09/20/2010 - 16:14 | 592911 Zexe
Zexe's picture

Actually i forgot to apologize myself. Why the hell did i think i was smarter than him :)

Mon, 09/20/2010 - 16:12 | 592907 VK
VK's picture

Doug Kass is short again now.

Mon, 09/20/2010 - 16:18 | 592925 Zexe
Zexe's picture

Maybe he will wait for 11,000.

Mon, 09/20/2010 - 16:20 | 592931 reading
reading's picture

Good thing he said on Friday he was starting to short the market.  Impeccable timing.

Mon, 09/20/2010 - 16:33 | 592964 Zexe
Zexe's picture

That was bait for the fools.

Mon, 09/20/2010 - 16:19 | 592927 dwdollar
dwdollar's picture

It's a battle royal between HAL9000, Skynet, V.I.K.I, Data and R2-D2.

Mon, 09/20/2010 - 16:21 | 592933 reading
reading's picture

I take r2-d2

Mon, 09/20/2010 - 16:25 | 592945 RobotTrader
RobotTrader's picture

Hard to be bearish when AAPL, BIDU, GOOG, etc. are acting so strong, and many are making new highs.

Shorting in this kind of environment is suicidal.

Mon, 09/20/2010 - 16:37 | 592975 thepigman
thepigman's picture

Which is why no one
is short. I might
add that you are sounding
more and more like
a pump monkey from
the dotcom era.

Mon, 09/20/2010 - 16:48 | 593020 DaveyJones
DaveyJones's picture

you're probably right, they're "acting"

Mon, 09/20/2010 - 17:18 | 593144 tmosley
tmosley's picture

The bears aren't short, they are long gold:

http://www.bullionbullscanada.com/index.php?option=com_content&view=arti...

What, no HUI plunge picture today?

Mon, 09/20/2010 - 16:34 | 592967 toathis
toathis's picture

net jobs are being added. Take off the Tin Foil Cap.

Unemployment has been dropping like a rock and should be around 8% by the time the new congress takes session in early 2011!

Got it?

No Great Depression 2.0! The worst is behind and is now quite difficult to see taking a look into the rear view mirror.

Once again today, SHORTS HAVE BEEN SLAUGHTERED!

Ben Bernanke, you are no.1, hun!

Mon, 09/20/2010 - 16:38 | 592978 UncleBen
UncleBen's picture

Go back to the Marketwatch boards, Babyfag

Mon, 09/20/2010 - 16:41 | 592988 toathis
toathis's picture

The US lost only 8 million jobs during the Recession. Since the Recession ended mid-last year. The US has been adding at least 50k new private sector jobs per month.

Ignore the Tin Foil. Yes, it is slow and will remain slow until 2012. Meanwhile consumers and investors SCRUB away at their balance sheets while the economy continues to recover!

Mon, 09/20/2010 - 16:55 | 593049 homersimpson
homersimpson's picture

Surely you are a troll if you are saying "while the economy continues to recover!" Otherwise, you're just an ignorant fool.

Mon, 09/20/2010 - 17:26 | 593173 NotApplicable
NotApplicable's picture

Or he hasn't heard that Romer's position has been filled by Austan Goolsbee.

Or maybe he is Austan Goolsbee?

Note that none of these options are mutually exclusive (not even the last one).

 

Mon, 09/20/2010 - 17:18 | 593138 willien1derland
willien1derland's picture

toathis, that is AT BEST 4% on the private sector job creation & you deem that SLOW? Ummm Order of Magnitude calling - they would like you to get an education PLEASE!

My question to you is simple, what is the impetus to create the balance of the required jobs? which sector(s)?

What frustrates me is the fact that the 'recovery' mantra never has provided a comprehensively cogent & credible storyline/timeline - the government stimulus has provided the 'sugar-high' of 2010Q1 & each quarter there after has seen CONTRACTION -  I wish you were correct - no one want to see another recession, but, there is a material issue that needs to be addessed in America - the return of critical thinking OR you can watch CNBC's Quack Box & purchase more posters of Bob Pisani!

Mon, 09/20/2010 - 17:28 | 593179 NotApplicable
NotApplicable's picture

There will be plenty of jobs wiping rich, old people's butts.

Mon, 09/20/2010 - 18:03 | 593266 zaknick
zaknick's picture

bankster troll

Mon, 09/20/2010 - 18:45 | 593370 merehuman
merehuman's picture

Whos economy is doing good? point the way!  Its not in the USA where housing and cars are in decline, no jobs, no product and losta government paper tightrope around our necks.

Shills or fool? which are you?

Mon, 09/20/2010 - 17:07 | 593095 BlackChicken
BlackChicken's picture

Net jobs are being added (ROFL, LMAO), really? Would you please elaborate where so many of us were wrong?

Unemployment dropping like a rock (ROFL, LMAO), really? Where, and what sectors have added so many jobs?

The worst is behind us (ROFL, LMAO), really?  Glad you are here, are you a Registered Psychic?

Mon, 09/20/2010 - 16:48 | 593019 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

Might the surge in insider selling in part have to do with pending changes to the federal tax code set to take effect in 3 months?

Mon, 09/20/2010 - 16:58 | 593057 Getagrip
Getagrip's picture

Good point. Maybe getting an early start on cost averaging out. Let's see if this trend continues...

Mon, 09/20/2010 - 17:00 | 593064 decon
decon's picture

That could be part of it, and part could be because they need to.  Just like the little people are supposedly drawing down their 201K's to make ends meet these corporate types have lifestyles to maintain also.

Mon, 09/20/2010 - 16:51 | 593032 ShankyS
ShankyS's picture

So, do we call that a prime short list?

Mon, 09/20/2010 - 16:56 | 593046 huggy_in_london
huggy_in_london's picture

so does spx drop 40 handles tomorrow when the fed doesn't give the market any new QE?  Either way, this is going to end in spectacular fashion!  Quite frankly, with stocks up here it hardly seems necessary to use the emergency measure of qe to further "stabilise asset prices".  In fact, to stabilise asset prices they might need to do the opposite!

When it ends, its going to end so, so badly.

Mon, 09/20/2010 - 17:00 | 593062 Getagrip
Getagrip's picture

And in a "flash"...

Mon, 09/20/2010 - 17:12 | 593118 huggy_in_london
huggy_in_london's picture

ha, yeah, when it turns i doubt there will be any bids (except the government).

Mon, 09/20/2010 - 17:00 | 593067 oklaboy
oklaboy's picture

SHOCKED, totaly shocked you have to confidence in Barry, Timmy, and Ben? yoooo yeeeee of little faith

Mon, 09/20/2010 - 17:07 | 593099 willien1derland
willien1derland's picture

+1 - Forgive me oklaboy, but I have SINNED!

Mon, 09/20/2010 - 17:04 | 593082 PositivelyNegative
PositivelyNegative's picture

So while insiders sell, they direct the companies they control to borrow billions to buy back shares, pushing up prices...Hmmmmm

Mon, 09/20/2010 - 17:06 | 593093 willien1derland
willien1derland's picture

I am stunned - 10 year yield down almost 30% from 1 Jan - USD hitting new lows, oil prices BARELY able to hover near $75 per barrel, headline unemployment @ 9.6% - bailouts continue unabated & the DJIA at 10,753 - TD & crew this is where you post on Charles Munger (one of your best) reflects the true reality - Wall St is insulated they have no fear as the government pumps $$$ in and leaves the taxpayers the bill - If Obama & his 40 thieves had any integrity left whatsoever they would allow the equity market to support itself & divert capital to work on the REAL economy -

Mon, 09/20/2010 - 17:21 | 593153 UncleBen
UncleBen's picture

Odooshbag never had any integrity in the first place

Mon, 09/20/2010 - 17:22 | 593161 BlackChicken
BlackChicken's picture

If Obama & his 40 thieves had any integrity left whatsoever...

 

What do you think those odds are?

 

Mon, 09/20/2010 - 17:16 | 593132 GlassHammer
GlassHammer's picture

Sheesh.... 290-1,

To think way back in the day we used to equate stock to a claim of ownership. 

Mon, 09/20/2010 - 17:45 | 593234 tom
tom's picture

Already posted this on another thread, but it seems more relevant here.

Here's ZIRP at work for the corporate CEO.

Step one: issue bonds at a record low rate for your company

Step two: announce a share buy back

Step three: sell some of your own personal shares

Step four: wait for increased earnings-per-share to impress market

Step five: issue bonds at a record low rate for your company

Step six ....

 


Buybacks Jump as Companies Borrow for Stock Purchases (Update2)

By Lynn Thomasson and Alexis Xydias

Sept. 20 (Bloomberg) -- Record-low interest rates are stoking the biggest increase in U.S. share buybacks ever.

American companies announced $55.9 billion in repurchases since June, data compiled by Birinyi Associates Inc. show. That adds to $93.5 billion in the second quarter and $108.3 billion during the first three months of the year, compared with $125 billion in all of 2009. Corporations are using debt to pay for buybacks after the average yield on U.S. investment grade bonds fell to an all-time low of 3.70 percent last month, data from London-based Barclays Plc show.

Companies from Microsoft Corp. to PepsiCo Inc. and Hewlett- Packard Co. are taking advantage of low-cost financing, purchasing their stock to boost per-share earnings at a time when the Standard & Poor’s 500 Index trades at a 26 percent discount to its average valuation since 1954. At the same time, choosing buybacks may show executives are too concerned about the economy to invest in new projects or make acquisitions.

“It’s so cheap to do it now in the bond market: issue debt, fix their cost of capital, then shrink the number of shares outstanding,” said James Swanson, chief investment strategist at Boston-based MFS Investment Management, which oversees about $197 billion. “The markets are almost calling for them to do it.”

Mon, 09/20/2010 - 18:38 | 593356 Rainman
Rainman's picture

I suppose they've cooked the books to cinders and fired everybody to the bone trying to beat the EPS est. Time to open Door #2. They all know Wall Street goes full memory delete within 24 hours. 

Mon, 09/20/2010 - 18:26 | 593331 DavidC
DavidC's picture

Apologies, off topic again, but I've just finished watching 'Stephen Fry In America' here in the UK - it included an Abraham Lincoln impersonator reciting the Gettysburg address - 270 words in less than 2 minutes.

Meanwhile we had Mr Obama today on CNBC for an hour...saying nothing.

Hmm, sort of puts it into perspective.

DavidC

Mon, 09/20/2010 - 20:30 | 593579 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

No doubt.  Lincoln was the real deal in leadership.  Obama can't say who he really is or where he really wants to take the country, because the large majority, having common sense, don't want to go there.  So he has to lie constantly.

Abe couldn't lie.  Obama can't not lie.

Abe went through hell in office to save the Union.  Obama is taking the country to hell whilst dividing us with his assinine rhetoric.

Abe was arguably the best.  Obama is arguably the worst in the works.

Mon, 09/20/2010 - 18:43 | 593365 Prof Quagmire
Prof Quagmire's picture

 

  But haven't the company insiders heard?  The recession is over, and happy days are here again.  They must not be spending enough time watching tv.

Mon, 09/20/2010 - 19:35 | 593473 T Rex
T Rex's picture

That's funny, I don't see the Bloomberg piece.

Imagine that.

Mon, 09/20/2010 - 21:10 | 593671 JackES
JackES's picture

there are a lot more upside room in US equity market

Mon, 09/20/2010 - 21:30 | 593711 Buck Johnson
Buck Johnson's picture

Your exactly right, they are getting out while the gettings good.  They know that this market won't last long, and they want to get out and/or reposition while they still can.  Because if they wait and everything tanks, then they will be among the millions trying to get out.

Mon, 09/20/2010 - 21:34 | 593727 grunk
grunk's picture

The insiders jump ship while the pensioners are stuck in steerage.

 

http://www.youtube.com/watch?v=pj-1b1Yvep8

Mon, 10/04/2010 - 04:33 | 623479 Herry12
Herry12's picture

Thanks for such a great post and the review, I am totally impressed! Keep stuff like this coming!...
cheap site hosting
windows web hosting
windows vps hosting
windows vps

Wed, 02/23/2011 - 02:48 | 987790 shawnlee
shawnlee's picture

Yeah, we should suck it in, let the gov't have our paychecks, and be glad with whatever they decide to let us have of our money. It's the least we can do to keep our gov't from collapsing.

i liked your approach.

diamond watches|642-374|70-401|thomas sabo watches

Wed, 04/20/2011 - 06:09 | 1187260 shawnlee
shawnlee's picture

Yeah, we should suck it in, let the gov't have our paychecks, and be glad with whatever they decide to let us have of our money. It's the least we can do to keep our gov't from collapsing.db2 practice exam
itil v3 practice exam
hp practice exam
icnd practice exam
iseb practice exam
jncia practice exam
juniper practice exam
mcdba practice exam
mcdst practice exam
mcitp practice exam
mcpd practice exam
mcsa practice exam

Mon, 05/23/2011 - 00:15 | 1301140 kummar
kummar's picture

$332 million, or just under 25% lower, and sellers came in well lower at "just" 72. But who needs details when you have the Fed... Certain not retail, which has now pulled money out of domestic stock funds for 19 straight weeks. So for those wondering just who is orchestrating today's move higher, please let us know if you find out.testking HP0-Y31
testking HP2-Z07
testking HP2-Z18
testking 000-037
testking 000-104
testking 000-105
testking 000-106
testking 000-107
testking 000-108
testking 000-115
testking 000-118
testking 000-119

Tue, 05/31/2011 - 00:31 | 1324488 kummar
kummar's picture

"Investors outside the U.S. bought 43.1 percent of the $1.41 trillion of notes and bonds sold by the Treasury Department this year, compared with 27.1 percent of the $527 billion issued at this point in 2008, government figures show."Pass4sure 642-067 \ Pass4sure 1z0-051 \ Pass4sure 310-065 \ Pass4sure 642-504 \ Pass4sure 642-655 \ Pass4sure 650-195 \ HP0-P14 \ 642-874 \ Pass4sure 642-971 \ Pass4sure 310-200 \ Pass4sure 642-533 \ Pass4sure 642-611

Tue, 07/12/2011 - 05:38 | 1447013 john310
john310's picture

Since the 1960s, meditation has been the focus of increasing scientific research of uneven rigor and quality. In over 1,000 published research studies, various methods of meditation have been linked to changes in metabolism, blood pressure, brain activation, and other bodily processes 642-979 dumps/JN0-522 dumps/350-001 dumps/E22-275 dumps/70-649 dumps/350-018 dumps/70-652 dumps/70-663 dumps/70-511 dumps/642-481 dumps/

Do NOT follow this link or you will be banned from the site!