Posts Tagged ‘insider selling’

Will We Hold It Wednesday – Global Correction Edition

You call this a correction?

The Nasdaq is down 4%, Russell is down 5%, the Hang Seng is down 6% and the FTSE is down 3.6% but barely a pause from the rest of our Global Indexes.  The problem is, it's been so long since we had a proper pullback that people think a tiny little correction is the end of the World.  Even in the good old days, before high-frequency trading made a joke out of the market – investors didn't get too upset about a 5% pullback

That may be the problem as well.  The reason the market has marched off to record highs is BECAUSE investors have been led to believe that it's better than bonds, better than cash, even – to have your money in the stock market.  We certainly seem to have convinced a lot of Boards of Directors that the best thing to do with their company's money is to buy back their own stock or the stock of their competitors – no matter how ridiculous the price.  

$533Bn of hard-earned Corporate Profits were spent buying just the S&P 500, by the S&P 500, in the past 12 months alone.  That's 20% more than all of 2013 ($420Bn) and 30% over the 5-year average and that DOESN'T include M&A activity – also at a record pace.   While this has been going on, insiders have been SELLING their company stock at a record pace – Interesting…

So the company uses it's profits, not to invest in it's own future but to prop up it's own stock price – making earnings seem better because you are dividing the profits by a lower number of shares than there were last year.  This inflates the stock price and the insiders get out and that's when you buy – is that about right?  

What a friggin' scam - I can't believe you fell for that!  Seriously, that is such an obvious fraud that you would think people would run screaming away from equities.  The problem is, there's nowhere to run to, is there.  Your cash is being devalued, bonds don't keep up with inflation, real estate is still very…
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Only 177 Times More Insider Selling Than Buying In Last Week

Tyler Durden reports, "Only 177 Times More Insider Selling Than Buying In Last Week."

Courtesy of Zero Hedge 

After hitting almost 10,000 a few weeks ago, insider selling has tapered off, and in the week ended December 10 insiders only sold a meager 177 more stock than they bought. There were 10 insider purchases of S&P companies for $3.4 million (of which one $2.6 million purchase of TIE stock accounted for 75% of the total), offset by just 136 insider sales totalling $605 million. Insiders who felt particularly compelled to share in their wealth effect included executives at Campbell Soup ($84 million), CVS ($55 million), Google ($54 million), Target ($28 million), and Ameriprise ($24 million). Other insiders who are applauding the Chairman’s attempt to stimulate the economy by pushing the Dow to 36,000 (and the price per gallon to $360) included those working for Amazon, Salesforce, Freeport McMoRan, Stabucks, AvalonBay, and another 126 companies. Luckily, there is more than enough HFT buying interest to levitate said stocks into these major offers and offset any selling pressure. In the last 3 months alone insiders have sold just under $10 billion once again confirming just who it is that is benefiting the most from the Chairman’s experimentation in monetary lunacy.

Source: Bloomberg 

 


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Green Mountain Coffee Roasters, Time to Spill the Beans?

Going through the SEC filing and press releases by Green Mountain Coffee Roasters led Sam Antar to ask Green Mountain Coffee Roasters, Time to Spill the Beans? Specific dates would make a good first step. – Ilene 

Courtesy of Sam Antar, White Collar Fraud

To truly exonerate itself after the discovery of certain material violations of Generally Accepted Accounting Principles (GAAP), Green Mountain Coffee Roasters (NASDAQ: GMCR) needs to come clean with investors and disclose exactly when it found certain accounting errors. In addition, Green Mountain needs to provide clearer and more transparent disclosures to investors about the Securities and Exchange Commission (SEC) inquiry and the discovery of those errors.

Timing of certain disclosures

On Monday, September 20, 2010, the SEC notified Green Mountain Coffee Roasters that it was conducting an informal inquiry and requested it voluntarily submit information concerning “revenue recognition practices and the Company’s relationship with one of its fulfillment vendors.”

Eight days later, on September 28, 2010, Green Mountain surprised investors by disclosing news of the SEC inquiry in an 8-K filing with the SEC. In that same 8-K report, Green Mountain disclosed that it discovered an "immaterial accounting error" affecting financial reports issued from 2007 to 2010: 

In connection with the preparation of its financial results for its fourth fiscal quarter, the Company’s management discovered an immaterial accounting error relating to the margin percentage it had been using to eliminate the inter-company markup in its K-Cup inventory balance residing at its Keurig business unit. Management discovered that the gross margin percentage used to eliminate the inter-company markup resulted in a lower margin applied to the Keurig ending inventory balance effectively overstating consolidated inventory and understating cost of sales. Management determined that the accounting error arose during fiscal 2007 and analyzed the quantitative impact from that point forward to June 26, 2010.

As of June 26, 2010, there is a cumulative $7.6 million overstatement of pre-tax income. Net of tax, the cumulative error resulted in a $4.4 million overstatement of net income or a $0.03 cumulative impact on earnings per share.

After evaluating the quantitative and qualitative aspects of the error in accordance with applicable accounting literature, including Staff Accounting Bulletins published by the SEC, the Company, with the participation of the audit committee of the Board of Directors,


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Insider Selling To Buying Ratio Approaches Five Digits, Hits Record 8,280x In Week Ending November 19

Tyler Durden reports on the latest insider buying trends and finds that "Insider Selling To Buying Ratio Approaches Five Digits, Hits Record 8,280x In Week Ending November 19" – Ilene 

Courtesy of Zero Hedge

In the first full week of the latest iteration of post-QE2 POMO, which was supposed to see a dramatic ramp in stocks, the only thing we have seen is the biggest insider buying to selling imbalance since the data has been tracked. Overall, selling by S&P500 insiders was 8,279.5x times greater than buying (per Bloomberg). There were 5 insider buys for a total of $150,673, and 117 sales for a total of $1,247,500,249. There is no point to even discuss what this data point indicates.

Zero Hedge, "Insider Selling To Buying Ratio Approaches Five Digits, Hits Record 8,280x In Week Ending November 19."


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

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

Courtesy of Tyler Durden

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… Certainly 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.


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

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

Courtesy of Tyler Durden

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… Certainly 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.


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SOME OPPORTUNISTIC INSIDERS SWEEP IN AMIDST SELL-OFF

SOME OPPORTUNISTIC INSIDERS SWEEP IN AMIDST SELL-OFF 

Courtesy of The Pragmatic Capitalist 

Though it was a very brief sell-off last week there were signs of a few optimistic insiders who made purchases of their own shares.  Insider buying for the latest week recorded its highest 4 week moving average since May of 2009.  Total buying for the latest week came in at $28.7MM.  Selling, on the other hand, remained extremely high with insiders selling $1.1B in stock.  Selling was down marginally from last week while buying was higher.

IT31 SOME OPPORTUNISTIC INSIDERS SWEEP IN AMIDST SELL OFF

Although this minor blip is far from a raging bull sign, it is the first remote sign of optimism from insiders since stocks tanked during the financial crisis in late 2008 when insider buying jumped to its 2 year high.

Notable buying:

it21 SOME OPPORTUNISTIC INSIDERS SWEEP IN AMIDST SELL OFF

Notable selling:

it11 SOME OPPORTUNISTIC INSIDERS SWEEP IN AMIDST SELL OFF

Source: FinViz 


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Insider Buying/Selling: The Collected Wisdom of a Thousand Heartbreaks

Insider Buying/Selling: The Collected Wisdom of a Thousand Heartbreaks

broken heart

Courtesy of Joshua M Brown, The Reformed Broker

With stocks challenging multi-year highs, I thought today would be a good opportunity to address one persistently negative datapoint that seems to be stuck in our collective craw – the trend of insider selling way outpacing insider buying in Corporate America.  And no, I have no idea what the hell a "craw" is, I’m a northerner.

My pal The Pragmatic Capitalist has done an excellent job on his site of documenting the weekly flow of sellers versus buyers and as you can plainly see, insiders are simply not showing up and purchasing shares of their own companies.  For example, insider buying totaled only $4.6 million worth of stock last week while selling hit $626 million. 

Of course, this is not bullish…but is it straight-up bearish?  Since I’ve fought all of these battles and learned a lot about the utility of tracking insiders (the hard way), I’ll share some of my insights on the subject and let you decide how meaningful this data is…

There will be generalizations below, take them with a grain of salt:

1.  "Growth Stocks" don’t get bought by insiders and executives unless the shares get hammered by a one-time event.

2.  Insider buying in "Value Stocks" is way more meaningful, especially in turnaround situations.

3.  Technology executives would rather be locked in a dark basement, listening to Billy Joel’s…
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INSIDERS STILL NOT BUYING THE RECOVERY TALK

Here’s Pragcap’s weekly report on insider trends.  I added several charts from Insider Cow below.  These charts show the lack of insider buying very graphically.  The decline in the buying/selling ratio appears to be due to extremely low levels of buying, because the selling is not at particularly high levels. – Ilene 

INSIDERS STILL NOT BUYING THE RECOVERY TALK

Courtesy of The Pragmatic Capitalist 

Negative trends in insider transactions were little changed on the week as insiders remain heavy sellers of their own shares while purchasing next to none.  Total buying remained very low historically at just $4.65MM for the week ending April 23rd.  Selling also declined from last week, but remains substantially higher than buying at $626MM.

The 4 week moving average fell slightly to $6.36MM – a near low since the economy troughed in 2008.  Insiders have remained skeptics of their own corporations despite recent signs of recovery.

IT31 INSIDERS STILL NOT BUYING THE RECOVERY TALK

Notable buying:

IT11 INSIDERS STILL NOT BUYING THE RECOVERY TALK

Notable selling:

IT2 INSIDERS STILL NOT BUYING THE RECOVERY TALK

Source: FinViz

Insider Charts from Insider Cow:

 


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AN UNSTOPPABLE BEAR KILLING MACHINE

AN UNSTOPPABLE BEAR KILLING MACHINE

Courtesy of The Pragmatic Capitalist 

A few weeks ago we joked that the SEC had banned all downticks.  That might not sound so funny now as there have been almost zero downticks over the last two months.  Stocks have rallied on 75% of all days and ever 0.5% dip has been aggressively bought into.  This market is an unstoppable bear killing machine.  Equities have reversed their full 1.5% losses from this morning as the “buy the dip” trade continues to dominate every minute of every day.  The truly amazing rally just doesn’t quit:

ES2 AN UNSTOPPABLE BEAR KILLING MACHINE 

 ******

As an aside, you might ask, who ISN’T buying?

Corporate insiders, that’s who. Look at these charts from Insider Cow:

insider buy

insider buy/sell ratio


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Phil's Favorites

When China and other big countries launch cryptocurrencies, it will kick off a global revolution

 

When China and other big countries launch cryptocurrencies, it will kick off a global revolution

Cash of the titans. Artistdesign29

Courtesy of Liang Zhao, Lund University

One of the hottest topics in cryptocurrencies is the prospect of major economies launching state-backed digital coins. China’s central bank recently accelerated plans for what is currently known as the Digital Currency Electronic Payment (DCEP). It could launch within the next 18 months, while the Europ...



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Zero Hedge

Russia's Only Aircraft Carrier Has Erupted In Flames

Courtesy of ZeroHedge View original post here.

According to TASS News and social media footage, a fire has erupted onboard Russia's only aircraft carrier, Admiral Kuznetsov, at a naval dock in Murmansk, northwest Russia. The aircraft carrier was undergoing repairs and maintenance when fuel tanks caught fire.

RT News...



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Insider Scoop

The Daily Biotech Pulse: European Nod For Amgen, miRagen Overhauls Clinical Pipeline, Tonix Snags Patent Win

Courtesy of Benzinga

Here's a roundup of top developments in the biotech space over the last 24 hours.

Scaling The Peaks

(Biotech stocks hitting 52-week highs on Dec. 11)

  • Acceleron Pharma Inc (NASDAQ: XLRN)
  • Aimmune Therapeutics Inc (NASDAQ: AIMT)
  • Aprea The...


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Digital Currencies

Three Men Arrested In NJ For Running Alleged $722 Million Crypto Ponzi Scheme

Courtesy of ZeroHedge View original post here.

Authored by Kollen Post via CoinTelegraph.com,

United States authorities in New Jersey have announced the arrest of three men who are accused of defrauding investors of over $722 million as part of alleged crypto ponzie scheme BitClub Network, per a Dec. 10 announcement from the Dep...



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Kimble Charting Solutions

Is Freeport McMoRan (FCX) Making A Run For the "Gold"?

Courtesy of Chris Kimble

Mining company Freeport McMoRan NYSE: FCX is enjoying the tailwind from a strong year for gold and silver prices. And although Copper prices are down, Copper has been turning up lately.

This has helped Freeport’s stock price recover in 2019 and has FCX testing a key breakout level.

Below is a “weekly” chart of Freeport McMoRan (FCX). The shaded channel outlined by each (1) highlights the longer-term downtrend that FCX has been stuck in.

But this could change on a dime, especially if FCX can breakout above (2). This area represents its re...



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Lee's Free Thinking

Chart Shows the Fed Ramping Up Not QE - Funding Almost All Treasury Issuance

 

Chart Shows the Fed Ramping Up Not QE – Funding Almost All Treasury Issuance

Courtesy of Lee Adler, Wall Street Examiner 

The Fed is ramping up “Not QE” .

The Fed bought $2.2 billion in notes today in its POMO, “not QE,” operations. Actually $2.15 billion because they sold back a whole $50 million. Must have been a little glitch in the force.

This brings the Fed’s total outright purchases of Treasuries to $170 billion since it started Not QE, on September 17.

It also did $107 billion in gross new repo loans to Primary Dealers to buy Tre...



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Chart School

Silver stock taking the sector higher

Courtesy of Read the Ticker

As the US economy begins to show late cycle characteristics like: GDP slowing, higher inflation, higher wage costs, CEO confidence slump. 
Previous Post: Gold Stocks Review

The big players in the market are looking for the next swing off good value lows. This means more money is finding it way into the gold and silver sector, and it is said gold and silver stocks actually lead the metal prices. The cycle below shows prices are ready to move in the months ahead (older chart re posted).




 

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Members' Corner

Sacha Baron Cohen Uses ADL Speech to Tear Apart Mark Zuckerberg and Facebook

 

Sacha Baron Cohen Uses ADL Speech to Tear Apart Mark Zuckerberg and Facebook

By Matt Wilstein

Excerpt:

Sacha Baron Cohen accepted the International Leadership Award at the Anti-Defamation League’s Never is Now summit on anti-Semitism and hate Thursday. And the comedian and actor used his keynote speech to single out the one Jewish-American who he believes is doing the most to facilitate “hate and violence” in America: Facebook founder and CEO Mark Zuckerberg.

He began with a joke at the Trump administration’s expense. “Thank you, ADL, for this recognition and your work in fighting racism, hate and bigotry,” Baron Cohen said, according to his prepared...



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The Technical Traders

VIX Warns Of Imminent Market Correction

Courtesy of Technical Traders

The VIX is warning that a market peak may be setting up in the global markets and that investors should be cautious of the extremely low price in the VIX. These extremely low prices in the VIX are typically followed by some type of increased volatility in the markets.

The US Federal Reserve continues to push an easy money policy and has recently begun acquiring more dept allowing a deeper move towards a Quantitative Easing stance. This move, along with investor confidence in the US markets, has prompted early warning signs that the market has reached near extreme levels/peaks. 

Vix Value Drops Before Monthly Expiration

When the VIX falls to levels below 12~13, this typically v...



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Biotech

Why telling people with diabetes to use Walmart insulin can be dangerous advice

Reminder: We are available to chat with Members, comments are found below each post.

 

Why telling people with diabetes to use Walmart insulin can be dangerous advice

A vial of insulin. Prices for the drug, crucial for those with diabetes, have soared in recent years. Oleksandr Nagaiets/Shutterstock.com

Courtesy of Jeffrey Bennett, Vanderbilt University

About 7.4 million people ...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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Free eBook - "My Top Strategies for 2017"

 

 

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Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

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