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Insider Selling Update: 2 Buyers, 50 Sellers; Ratio Of Corporate Stock Buybacks To Insider Purchases: 16,800 To 1
Nothing new in the latest S&P 500 insider selling (and occasional buying). There were 2 (count them: two) purchases of stock by corporate insiders, of which one, which accounted for 97% of all purchases, came from Berkshire Hathaway. As usual selling dominated, with a ratio of 41 in notional sales to buys.
And while we have been exposing this relentless dumping by insiders for years now, TrimTabs has added some voice to these ongoing warnings in which insiders sell their holdings to far less knowledgeable investors who are happy to burn "other people's money." Specifically, TrimTabs looks at the corporate share repurhcase-to-insider stock buying ratio, and gets some shocking results, namely that companies that have enacted $168 billion in corporate buybacks in 2011 have matched this with just $10 million in insider buying, a 16,800-to-1 ratio.
Corporate insiders are using little of their own money to buy shares in their companies, even as their companies announce large share repurchases, reports TrimTabs Investment Research, indicating that corporate insiders have little confidence that their company stock price is going to rise.
In a research note, TrimTabs reported that companies have announced a solid $124 billion in stock buybacks in Q2 2011, yet insiders have used less than $2 billion of their own money to buy stock in the quarter, one of the highest ratios of announced company share buybacks to insider stock purchases since TrimTabs began keeping records in 2004.“We’ve never seen such a sharp contrast between what insiders are doing with their own money and what they’re doing with the money of the companies they manage,” said Charles Biderman, CEO of TrimTabs. “The best-informed market participants seem worried about what will happen to the economy when the Fed stops printing money,” Biderman said. “While insiders are willing to use corporate cash to try to support the value of their stock-based compensation, they don’t seem to think their stocks are attractively priced.”
“The ratio of announced stock buybacks to insider buying topped 70 in the first two quarters of this year,” noted Biderman.
“They were by far the highest levels in our records. How many of the analysts and journalists, cheering the big buybacks, realize that the people rolling them out aren’t buying anything themselves?”
TrimTabs data shows that insider buying has occurred at just six of the 30 companies with the biggest announced stock buybacks this year, totaling $168 billion dollars. The insider buying at these six firms amounted to less than $10 million, making for an announced-buyback-to-insider-buying ratio of 16,800 to 1.
Here are the biggest transgressors.
With virtually no corporate insider willing to put their pesonal money where their corporate cash is, how can America be expected to have any faith in what David Rosenberg yesterday called the "artificial recovery"?
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But RoboJunker tells me EVERYONE is rushing to buy stocks! How can this BE?
'Artificial recovery' thats even putting heavy layers of makeup on this pig.
RainbowTrader is like a cherry-bomb in the toilet: his outdated mode of getting attention makes you laugh sometimes, but it gets annoying very quickly too when it is constant
that sound you're hearing is that of insiders using stock options to translate directly into cash via the buybacks.
It's profits going DIRECTLY to management. Each and every one of those companies should have paid that cash to OWNERS.
Corporate insiders don't matter - Brian Sack does. I've got a feeling he's a net buyer ("other" on Fed's balance sheet?).
Long as he's long...to the moon Alice!
Insiders dumping into free money monetization, thats all this is...when it suddenly dries up, just think back to Wille E Coyote when his feet stop churning in mid air and looks down.
And when Bernank/Sack are done monetizing all ETF's, watch mom and pops surprise one morning when theyre notified the Treasury has taken control of their retirement and 'annuitized' it...oh man this is going to be hillarious!
Perfect day for BS...low volume and with a tug here and a technical level acheived there, he can goad all the algo's to do his bidding. But why do you think it would suddenly dry up? At this point you gotta believe they are truly committed to maintaining the game...I doubt any laws or regulations not exactly followed will bother them much.
Gotta believe BS believes the more "assets" removed from the game for fiat the better...lowering the overall asset base can only be bullish for those remaining in float (once anything goes on Fed's balance sheet or black box...there it will stay to "maturity").
'Maintaining the game'....yes the endgame, which is not making sure moms and pops 401K and pension remain flush and ever increasing for their comfy retirement, the REAL game is the 3rd worlding total transfer of all wealth of america, and theyre right at the last step. Easy for em too, everyone believes 'the game' is making sure stocks are greener every day and fatass lazy spoiled americans are kept happy.
Sounds good but remember top 1% of income earners in Merika own nearly 40% of all equities...top 10% own almost 85% of all equities.
Mom and Pop got fucked long ago cause they don't have shit to begin with...vast majority of Amerikan's only have SS and like Paul Simon sang, "it's slip sliding away".
Maintaining the stock market is about maintaining the elite - tearing down SS and the like, that is the true 3rd worlding taking place. Poor fuckers might as well have believed in fairy tales and the easter bunny.
No, ETF's own most of all the equities, and Bernank is about to seize it all.
the gov't is going to seize equities then sell them to WHOM?
Yeah, but in this episode the freakin' coyote has a gold lined air mattress at the bottom of the canyon.
While sacks account doesn't hurt stock prices, zirp is what really keeps stocks up, the management borrows cheap and uses the money for stock buy backs giving the insiders a buyer for any amount of shares they wish to sell without depressing the price.
Probably just freeing up some cash to buy treasuries....
Off topic a bit here, but just read that Obama is proposing $600 billion in new taxes as part of the debt talks - I cannot seem to find if it is over 10 years or annually. If over 10 years I think it might be ok, if annually - I think there will be serious trouble ahead.
Does anyone know over what period is that - 10 years or annually?
Ahhh ha ha haaaa ha haaa good one man!
'$600 billion in new taxes anually HMMM that might be a bit of a problem on bankrupt greatest depression americans....but $60 billion in new taxes yearly should be just fine'...
Yeaaaaaaa....
JFK comes to mind.
If he wants a balanced budget...he needs to come up with about $2.5 trillion in taxes!
Well they think you can with the addition of cutting imaginary funding.
So why not to go back to the 2007-2008 budget with a whooping 200-300 billion deficit? It would probably have no deficit right now.
Just another part of the kleptocratic crime wave in action.
Mad monetization of ETF garbage, for the endgame of pulling the rug out from mom and pops comfy planned retirement at The Villages.
I hope the Greatest Generation has stocked up heavily on cat food stores, theyre gonna need it.
1. Grant self stock options stripping value from existing shares...check.
2. Sell stock options and become an overpaid millionaire....check.
3. Announce corporate buyback, leaving shareholders as bagholders....check.
4. ____________________________
5. Blow money on shiny bobbles at Tiffany and Co.
6. Presto! Economic recovery!
I like step 4 the best!
Step 4 is the DOJ should be incarcerating banksters instead of going after the Liberty Dollar guy.
http://en.wikipedia.org/wiki/Liberty_Dollar
more relevant, look at all the insider sells while they use company cash to artificially prop stock prices. $425 Million in sales compared to the 10 million in purchases. when there are no more buyers of your crappy stock, use company cash to bid up the price so you can sell your shares back to your company.
FRAUD.
I just quoted this stat (to a bull) and response was
"Obvioulsy it's like that. Companies have more money than the individuals that work for them."
Absolutely no appreciation of the EXTREME ratio. Lemmings. They're all lemmings.
Bartanist above is probably right.
About the only time I care about this metric is in small and midcap value stocks.
It seems fairly worthless as a broad market indicator anymore.
I'll grant it is a dull instrument to underrstand the state of the market. But there is no question that stock in companies that buy back stock underperform. So the question is "why aren't insiders buying when they direct their companies to do so?"
The Sony Rewards website just crashed.
Back before it became common for execs to simply give "gift" shares to themselves under the ludicrus cover of "don't you wan't the execs to have the same incentive as the shareholders" (Options may provide that incentive because they can expire worthless, but not freebie shares), the only way for execs to get shares were from purchases, and then options.
Insider buying is now a dead concept. Insiders have no reason to buy. Now, board cronies vote each other gobs of free shares and they each systematically embezzle and rob the company and shareholders.
For all intents are purposes there will never again be an incentive for insiders to buy shares ... it is a useless measurement.
Yeah, yeah, Insiders selling, blahh-blahh... You will be selling too, if you got Free Options, did you? Stock Market going higher, bobos, sorry, your doom theory doesn't work, Nike blow out the Earnings Numbers today, including sales in the USA.. DOW 15k by early 2012, write this on your f* refrigerator.! And keep whining please, seems like it's boosting World-wide Markets, Thanks.
LOL DOW has been spinning tires in the mud at 12,100 avg for SEVEN months! Youre fooled by the WEAKEST of illusions? Sad! A totaly DEAD market, and you think its going higher? Whatever! Lets see this garbage just get back to 12,800 where it was pumped to recently, or did ya already forget that fact!
Yes, I see it higher, We going to take out previous high of 12865
on DOW
in October, ones summer correction is over.. Bernank might be
doing QE3 by then as well. We'll check back on this in 3 month, ok?
You may be right, and I'm ok with that. But if the DOW hits that number, it will take less ounces of Silver to buy a share of the DOW than it does today. That's not only on my refridgerator, it's on my trading account reports.
OH so we're going back to the recent pumped up level of 12,865 by October, once 'the correction' is over.....huh....well if this is 'correct', then why would it go back to previous pumped up bubble level? Really I think youre just a big bullshitter.
13000 baby!
Daddy's girl needs a new pair of shoes!
Good one Greeny!
Makes total sense that, for instance, Nike insiders (who by the way are millionaires and not short of cash) are dumping their shares (rather than holding or buying). To do what with their money??? Just answer why they would sell now rather than hold and enjoy Dow 15K w/ you??? Strange they don't share your enthusiasm?
Wonder if they know something about their business? Wonder if they are a little concerned about future tax structure? Hmmmm...
Its ridiculous, market is already a bubble big time yet people believe Bernank is working in their best interest to make their stocks go higher...people are in for a very rude awakening very soon.
That's what Insiders do, when they receiving Stock Options
as bonuses, the exercise options and sell the stock. If it's
FREE 0$ cost anyways, it is still good at any price. Why wait
and take maybe more or less money later, than you can get cash
right here and right now? Comeback in December, dude.. And
enjoy the party, Miner stocks will be going through the roof by then.
Cash to do what?
These folks aren't short spending cash. Why sell their good thing and take the tax hit? Many of these folks have been sitting on options for years...and many of these folks have also been buying company shares for years. Why the sudden abandonment of buying but still exercising the selling?
These folks need to remain invested somehow unless you believe they are selling to raise cash in a bull market??? Why sell the thing they know the most about (their biz w/ inside knowledge of future activity) and buy things they inherently know less about?
why the fuck not?
Most of these execs have gifted themselves the majority of their insane pay packages in shares, so that they will be "invested and incentivized" and all that bullshit.
This is their salary. Why concentrate your wealth position in one company?
it's the old systemic risk inflation poking up it's head again.....
http://www.youtube.com/watch?v=WPp0Ey1kjwc
Cant have inflation either, no one can afford it in Greatest Depression Kleptocracy america! So now what?
What a sad state of affairs when the markets are nothing more than frontrunning illusionists that look to steal from others-- the markets are no better then 3 card monty where the marginal sucker may be diminishing.
Is there a link to show the logistics of how there can be both insider selling and a rising Dow? Is it rigged to rise during very low volume days and then the insider selling happens on high volume days?
You may be right. But if the DOW hits that number, it will take less ounces of Silver to buy a share of the DOW than it does today. That's not only on my refridgerator, it's on my trading account reports.
You may be right. But if the DOW hits that number, it will take less ounces of Silver to buy a share of the DOW than it does today. That's not only on my refridgerator, it's on my trading account reports.
Insider selling has nothing to do with what the criminals doing the selling believe in terms of the market going higher or lower. Insider's sell because "they can". Listen folks, the U.S. stock market, which is the most corrupt market in the history of mankind, exists as a "printing press" for the elite, much like the criminal U.S. dollar.
The criminals that run our corporations "print" stock certificates just like the Bernanke----when they want money, they print.
The only thing AMAZING and absolutely dumfounding is that many sophisticated investors get so caught up in analysis that they never take a step back and look at the stock market for the criminal fiat ponzi scheme printing press that it is.
I can understand Joe 401k six pack not understanding that whatever gains his Apple shares might realize will ultimately be eaten up and "consumed" by the greedy employees and managements of Apple, etc. Every corporation ultimately "debases" its stock (currency) through "printing", whether that is through generous stock optiosn or outright printing via other sophisticated (and not so sophisticated) strategies.
The bottom line is the United States has the most corrupt fiat ponzi scheme system the world has ever known. While many markets try to mimick the corruption and "printing" that corrupt U.S. corporations have the ability to do, NOBODY has ever been able to produce and expot corruption like the United States.
These insider "sales" numbers will always come out this way----the only thing that may or may not ever change is whether Joe Six Pack will one day wake up and say "if Bernie Madoff was a printing criminal, what about the average U.S. corporation"? If that were to ever happen, perhaps sanity would return to our so-called corrupt markets. Until then, best step aside.
Thanks for the explanation. So their notional Market Capitalisation is so bloated and overstated, that only a tiny percentage of stockholders selling for cash would wipe them out?
Absolutely----why do you think the corrupt banks and corrupt money managers panic every time we have the slightest sell off? Why does the corrup media work overtime lying about the true state of affairs, etc. The fact is the corrupt, fiat ponzi scheme printing press that we call the U.S. stock market can only exist if lemmings "believe" and keep sending their labor in via fiat dollars every month. The criminals take their fiat by printing worthless paper, then convert that worthless paper into real assets. In effect, the criminals that run our corporations are able to steal the labor of the masses without them even knowing it.
The problem is if only a very tiny fraction of the population figured out this corrupt scheme and stopped sending them their labor (via fiat), these criminals ability to print their own prosperity would be in jeopardy, and as soon as word got out, the whole system would collapse because it is nothing more than a ponzi scheme-----one that Madoff modelled his own affairs after.
At the end of the day, it is unlikely our corrupt fiat ponzi scheme will collapse, because our corporate media is corrupt and will never tell the truth---it is not their interests to tell the truth. Moreover, joe six pack just wants to watch ESPN or American Idol----he doesn't understand the basics of a worthless pice of fiat paper, much less the sublities of how our corrupt criminal masters steal his labor via worthless paper.
+1 Great Insight WSP. It will not end well. It never does. For now, the music plays and all the chairs are empty. Eventually the music will stop. And as before, it is not different this time. The crash will come, (20% or much better), and we will once again rinse and repeat. The profits will have already been capitalized and the loss will be socialized. The process has already begun. Real money will still be real money. Fiat will still be fiat.
Insiders at AZO have been selling en-masse for months now.
Yet that stock keeps grinding up.
$30 to $290 since the 911 attacks.
HEY Robo NICE job on not junking every post on this article like you did to all the others all morning!
Follow the money. Insiders are buying PM's or whisking the cash out of the country- or both.
http://finance.yahoo.com/career-work/article/113032/little-house-secrets-great-plains-reuters
Exactly, one thing is certain theyre sure as hell not buying LULU or SBUX stock.
"Every corporation ultimately "debases" its stock (currency) through "printing", whether that is through generous stock optiosn or outright printing via other sophisticated (and not so sophisticated) strategies."
=====
Check how much you will have by now investing in Microsoft since
they started.. Or AAPL, since you mention it. Shares of those corps
doing much better than GOLD. Profits rises, stock price reflect it..
It's complete absurd argue with the Old mama about benefits of using
iPhone.. You, doomsters, will stick to your agenda,
until you eventually right and that might take another decade or two,
keep whining please.. I hope you have another 20 years to spear on
this BS... Good luck.
OH its now 'cherry-pick rear view mirror investing strategy' time....wow thats just GREAT!
I can run you a long list of such 'blue chip' stocks that reached astronomical heights, then crashed, during that same time period!
See, people like you are too spoiled, you think all is well no matter what. Well....maybe some problem 20 years down the road...YEA uh huh.
You have no grasp on reality of whats really going on with all this, you think theyre just out there propping up stocks for your personal benefit? Greeny you got a massive wakeup call coming real soon.
You know what? I have some short positions as well
Long some VIX calls (so far loss)
Own puts on QQQ for protection (also in loss)
Got bear Calls spread on RUT (loss so far as well)
Should I short more? That's what you got shorting America..
Wanna try? If I'm going to cut those loses in half by the
end of July, I'd consider that lucky trade.. Double deep my ASS!
There was a time when investing in corporations was not only safe, but a good investment. This was before everybody was in "take" mode. Back when Microsoft was a good investment it was not run by "takers", but rather, "innovators".
The 1990's technology boom changed everything. Valuation was replaced with corruption; managements became corrupt, employees became corrupt. Now it is every man for himself-----corporations exists as "takers", they don't create value or equity----they simply use other peoples money for their own person benefit.
Like musical chairs and all fiat ponzi schemes, this can go on much longer than sane people can stay solvent---that is why you should NEVER SHORT corrupt fiat ponzi scheme markets. That doesn't mean they are not fiat ponzi schemes----it just means never underestimate the stupidity and ignorance of people like YOU who "hope" the market will "go up" and when it does you mistake that for intelligence.
The funny thing is corporations fear truth tellers like me----they love idiots like you because you are their best customer---you trade your labor for their worthless fiat paper.
Well Greeny (since we are all doomers here) ask yourself why YOU spend so much time here?
You can't help us you see...so you might as well go away...no need to subject yourself to all this doom & gloom...
bye bye
That list doesn't include Overseas Shipholding insider buying. If I'm not mistaken the two Directors at OSG bought $2 million in equity @ $25 per share about 2 weeks ago.
THAT WOULD DOUBLE insider buying. LMAO.
Maybe theyve already dumped again.
These criminals will do all sorts of strategies, however, so you have to be careful. They will buy stock publicly to make it look like they are buying, then short via puts. Just one of many ways.
Bottom line is the Unites States has the most corrupt managements in the history mankind. Most "equity" that exists is quickly transferred to management, their friends, and the corrupt legal system that supports them.
Study the corrupt U.S. financial system and what you find is corrupt fiat ponzi scheme pilfering and screwing of people throughout the system. From the halls of corrupt universities like Harvard to the halls of Congress and the cess pool we call New York, the entire financial system is one big fiat ponzi scheme that feeds off the labor of the average American.
Not all management starts out corrupt, but all end up that way. Whether it is managements wifes asking "how come the wife of ABC corp gets to go to the salon" all the way to managements being jealous of each others beach houses-----in the end, all players become corrupt.
It used to be that our government kept things in balance---no longer----we have "state suppoted" corruption now, so managements are actively encouraged to be corrupt, provided they send some of the spoils governments way.
Its a free for all----screw everybody as quickly as you can!
And thru it all, a common factor. The jooz are crawling in the shadows behind everything, like the human cockroaches they are. Now you know who to direct you anger at once everything falls apart.
Bernank already injecting QE3. Those guys are on drugs,
cannot stay too long without it.. :)))
Don't you need real human beings with real money to keep a ponzi scheme going?
That is being put to the test as we speak---Bernanke and his printers are going to see. Long term, no, but their hope is they can lie, cheat, and steal long enough for a new generation of suckers to be born who will not learn the lessons of "history" since truth is never told.
Here is the latest headline from the Wall Street Journal (aka Criminal State Journal)
News Alert
from The Wall Street Journal
Online social gaming company Zynga, maker of the popular FarmVille and CityVille games, is preparing to file for an initial public offering as early as Wednesday and hopes to raise up to $2 billion.
The company is expecting a valuation of between $15 billion and $20 billion. A valuation of $20 billion would be in the range of Yahoo's market value, about $19.5 billion.
----
Okay, now think about it. Most people who have been around the market for a year or two know that this is just a criminal charade for the owners to "cash out" at the expense of the IPO purchasers. The entire New York vile population supports and promotes the criminal raping of the country through this destructive criminal IPOs because it benefits their dirty, vile city and its anti-American values.
All New Yorkers get in on the action-----they know this company is worthless, just like all the other worthless companies. Think about it: if you had a company that was worth something, why sell out? What are you going to do with the money? Now, these dirty, vile New Yorkers will say these companies just need money to grow---yes, right. If that were true, believe me, there is PLENTY OF PRIVATE EQUITY that would love to get in on good deals---there is more money than there are deals. As a bonus, you don't have to do quarterly reporting, etc.
No, companies only go public when they are ready to begin the "fleecing" action. Right now, more investors than not understand the criminal enterprise that is Wall Street----the Bernanke and his criminal banker friends are hoping that our memories are short and they our urge to come back to the criminal ponzi casino will be too much to resist.
The only way to FIX the problem is to educate every generation to stay away from the criminal ponzi scheme----you must cut off the vile, destructive predators of New York, otherwise, like pedophiles, they will prey on the young and uninformed.
We need to reject all the fiat currencies. Without it, they'd have to actually get off their asses and work in order to rule us likes kings, not just print a bunch of debt.