Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
Gold Price Closely Tracks Debt-to-GDP Ratio - 9th Apr 20
Gold, Silver and Rigged Market Socialism - 9th Apr 20
Going to School in Lockdown Britain, Dobcroft Sheffield - 9th Apr 20
Amazon Face Masks to Protect Against Covid-19 Viral Particles N95, FPP2, PM2.5, for Kids and Adults - 9th Apr 20
Is Natural Gas Price Ready For An April Rally? - 8th Apr 20
Market Predictions And The Business Implications - 8th Apr 20
When Will UK Coronavirus Crisis Imrpove - Infections and Deaths Trend Trajectory Analysis - 8th Apr 20
BBC Newsnight Focuses on Tory Leadership Whilst Boris Johnson Fights for his Life! - 8th Apr 20
The Big Short Guides us to What is Next for the Stock Market - 8th Apr 20
USD Index Sheds Light on the Upcoming Gold Move - 8th Apr 20
The Post CoronaVirus New Normal - 8th Apr 20
US Coronavirus Trend Trajectory Forecast Current State - 7th Apr 20
Boris Johnson Fighting for his Life In Intensive Care - UK Coronavirus Crisis - 7th Apr 20
Precious Metals Are About To Reset Like In 2008 – Gold Bugs, Buckle Up! - 7th Apr 20
Crude Oil's 2020 Crash: See What Helped (Some) Traders Pivot Just in Time - 7th Apr 20
Was the Fed Just Nationalized? - 7th Apr 20
Gold & Silver Mines Closed as Physical Silver Becomes “Most Undervalued Asset” - 7th Apr 20
US Coronavirus Blacktop Politics - 7th Apr 20
Coronavirus is America's "Pearl Harbour" Moment, There Will be a Reckoning With China - 6th Apr 20
Coronavirus Crisis Exposes Consequences of Fed Policy: Americans Have No Savings - 6th Apr 20
The Stock Market Is Not a Magic Money Machine - 6th Apr 20
Gold Stocks Crash, V-Bounce! - 6th Apr 20
How Can Writing Business Essay Help You In Business Analytics Skills - 6th Apr 20
PAYPAL WARNING - Your Stimulus Funds Are at Risk of Being Frozen for 6 Months! - 5th Apr 20
Stocks Hanging By the Fingernails? - 5th Apr 20
US Federal Budget Deficits: To $30 Trillion and Beyond - 5th Apr 20
The Lucrative Profitability Of A Move To Negative Interest Rates - Pandemic Edition - 5th Apr 20
Visa Denials: How to avoid it and what to do if your Visa is denied? - 5th Apr 20 - Uday Tank
WARNING PAYPAL Making a Grab for US $1200 Stimulus Payments - 4th Apr 20
US COVID-19 Death Toll Higher Than China’s Now. Will Gold Rally? - 4th Apr 20
Concerned That Asia Could Blow A Hole In Future Economic Recovery - 4th Apr 20
Bracing for Europe’s Coronavirus Contractionand Debt Crisis - 4th Apr 20
Stocks: When Grass Looks Greener on the Other Side of the ... Pond - 3rd Apr 20
How the C-Factor Could Decimate 2020 Global Gold and Silver Production - 3rd Apr 20
US Between Scylla and Charybdis Covid-19 - 3rd Apr 20
Covid19 What's Your Risk of Death Analysis by Age, Gender, Comorbidities and BMI - 3rd Apr 20
US Coronavirus Infections & Deaths Trend Trajectory - How Bad Will it Get? - 2nd Apr 20
Silver Looks Bearish Short to Medium Term - 2nd Apr 20
Mickey Fulp: 'Never Let a Good Crisis Go to Waste' - 2nd Apr 20
Stock Market Selloff Structure Explained – Fibonacci On Deck - 2nd Apr 20
COVID-19 FINANCIAL LOCKDOWN: Can PAYPAL Be Trusted to Handle US $1200 Stimulus Payments? - 2nd Apr 20
Day in the Life of Coronavirus LOCKDOWN - Sheffield, UK - 2nd Apr 20
UK Coronavirus Infections and Deaths Trend Trajectory - Deviation Against Forecast - 1st Apr 20
Huge Unemployment Is Coming. Will It Push Gold Prices Up? - 1st Apr 20
Gold Powerful 2008 Lessons That Apply Today - 1st Apr 20
US Coronavirus Infections and Deaths Projections Trend Forecast - Video - 1st Apr 20
From Global Virus Acceleration to Global Debt Explosion - 1st Apr 20
UK Supermarkets Coronavirus Panic Buying Before Lock Down - Tesco Empty Shelves - 1st Apr 20
Gold From a Failed Breakout to a Failed Breakdown - 1st Apr 20
P FOR PANDEMIC - 1st Apr 20
The Past Stock Market Week Was More Important Than You May Understand - 31st Mar 20
Coronavirus - No, You Do Not Hear the Fat Lady Warming Up - 31st Mar 20
Life, Religions, Business, Globalization & Information Technology In The Post-Corona Pandemics Age - 31st Mar 20
Three Charts Every Stock Market Trader and Investor Must See - 31st Mar 20
Coronavirus Stocks Bear Market Trend Forecast - Video - 31st Mar 20
Coronavirus Dow Stocks Bear Market Into End April 2020 Trend Forecast - 31st Mar 20
Is it better to have a loan or credit card debt when applying for a mortgage? - 31st Mar 20

Market Oracle FREE Newsletter


These Insiders Are Fleeing the Stock Market… Should You Too?

Stock-Markets / Stock Markets 2013 Apr 07, 2013 - 06:19 PM GMT

By: Investment_U


Alexander Green writes: The financial media is full of scary new reports indicating investors should cut back on stocks or flee the market altogether. The reason? SEC data show a high ratio of insider selling.

I’ve been following insider activity in the stock market for decades, and while officers and directors are the epitome of “smart money,” the mainstream media – as usual – is painting an incomplete picture.

Let’s start with the facts. In recent weeks, insider selling has outnumbered insider buying by a ratio of almost 10-to-1. That’s the most bearish reading in almost 15 years.

Moreover, insiders are generally worth paying attention to. Not only do they know more than we do about their employees, customers, suppliers and competitors, but they have access to all sorts of material, non-public information like the direction of sales since the last quarterly report, the gain or loss of major customers, the pending settlement of litigation, new products and services in development, and so on. That can’t help but give them an unfair advantage when they transact in their own stock. It’s also why the SEC requires them to file a Form 4 (electronically and within two business days) detailing how many shares they bought or sold, on what date, and at what price.

Sometimes when the insiders are bailing out en masse, it is indeed a negative commentary on the prospects of a business. Other times it is because they are diversifying their portfolios, paying for an expensive private school or maybe even getting a divorce. Bill Gates has been a regular seller of Microsoft for more than 20 years. Not because he doesn’t like the company but because he has almost his entire net worth tied up in it.

However, a fuller understanding reveals the recent ratio of insider selling is nothing to get alarmed about. A high percentage of sales in recent weeks were the result of just a few insiders selling a huge number of shares. The first week of March, for example, John Schreiber, a director of General Growth Properties (NYSE: GGP), sold 18 million shares worth $356.4 million. Officers and directors of FleetCor Technologies (NYSE: FLT) sold $400 million worth of shares. Directors of Charter Communications (Nasdaq: CHTR) sold more than $550 million worth. If I were a shareholder of these companies, I would take a closer look and check things out. But the sheer size of these sales skews insider data and says nothing about how the vast majority of insiders feel about the market.

Of course, insiders don’t know any more about the future of the economy or the entire stock market than you or I do. They are experts on their own companies’ prospects, not the direction of the whole S&P 500.

If you see insiders bailing out of their own stock, it’s at least a reason for concern and perhaps a reason to lighten up on your own shares. But as I mentioned, there are legitimate reasons for insiders to sell their shares that have nothing to do with the outlook of the company.

The time to really pay close attention, however, is when you see insiders piling into their own companies’ shares with their own money at current market prices. As buy signals go, it doesn’t get much better than that.

Dozens of academic studies have confirmed that companies under heavy accumulation by the officers and directors who oversee them tend to outperform the market averages by a wide margin.

So if you’re looking to put fresh money to work, a good place to start would be companies experiencing significant insider buying. That’s the kind of news worth listening to…

Good Investing,


P.S. I’ve had incredible success over the years trading stocks based on insider buying – and many of my readers have too. But there’s a more profitable way to use this information. One that has generated short-term gains of up to 646%.

But it’s not for everyone.

In a way it’s like dynamite; when used properly, it can produce some truly amazing results. But when used improperly, foolish investors can blow their thumbs off. That’s why I’ve kept it private for the past 11 years – until now. I’m putting the finishing touches on a brand-new report detailing this lucrative, but

Source :

by Alexander Green , Oxford Club Investment Director Chairman, Investment

Copyright © 1999 - 2013 by The Oxford Club, L.L.C All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Investment U, Attn: Member Services , 105 West Monument Street, Baltimore, MD 21201 Email:

Disclaimer: Investment U Disclaimer: Nothing published by Investment U should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Investment U should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Investment U Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules