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

Trump's crackdown on Iran's oil exports could backfire badly - with serious risks to global economy

 

Trump's crackdown on Iran's oil exports could backfire badly – with serious risks to global economy

Courtesy of Nafis Alam, University of Reading

The US has unnerved the world oil market by ramping up the pressure in its long-running dispute with Iran. It has announced that, after May 1, it won’t renew the exemptions given to eight countries that enable them to buy Iranian oil. Those affected, which include China, India, Japan, Italy and South Korea, will face sanctions from Washington if they don’t comply. The move will likely squeeze global oil supply at a time when it is already struggling from disruptions in ...



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Zero Hedge

Gold Bounces Off Key Technical Level, Erases Earlier Plunge

Courtesy of ZeroHedge. View original post here.

Update: European markets closed and gold found a bid, erasing earlier losses...

And for now, it has decoupled from the dollar strength...

*  *  *

Gold futures suddenly took a turn for the worse this morning as 'someone' once again decided that 0830ET was the perfect time ...



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Insider Scoop

Arista Networks Stock Already Reflects Bright Growth Prospects, Morgan Stanley Says In Downgrade

Courtesy of Benzinga.

Checks indicate Arista Networks Inc (NYSE: ANET) should easily meet expectations in the current quarter and could continue to gain share going ahead, but its stock already reflects these positives following a recent rebound, according to Morgan Stanley.

The Analyst

James Faucette ...



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Chart School

Weekly Market Recap Apr 21, 2019

Courtesy of Blain.

This past week was the definition of “consolidation” – a period of very little movement and volatility after a large move up to work off overbought conditions.  A slight gap up Tuesday was about it in terms of excitement for the week.  Bulls remain in full control.

We are in the midst of earnings season – it is not a great one but companies have lowered the bar enough that they will “beat”, everyone will clap and cheer, and we continue on.

The first-quarter earnings outlook has improved somewhat, according to CFRA, which said consensus estimates now call for a 2.3% fall in first-quarter operating earnings a share. That is up from the call for a 3% drop ahead of the kickoff of earnings season, but down from the 4.5% increase projected at the end of last year...



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Digital Currencies

5 Cryptocurrency Tax Questions To Ask On April 15th

Courtesy of ZeroHedge. View original post here.

Authored by David Kemmerer via CoinTelegraph.com,

Depending on what country you live in, your cryptocurrency will be subject to different tax rules. The questions below address implications within the United States, but similar issues arise around the world. As always, check with a local tax professional to assess your own particular tax situation.

...



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Kimble Charting Solutions

Silver Bear Market Faces Big Price Support Test!

Courtesy of Chris Kimble.

When silver, gold, and the precious metals industry were red-hot bullish in the 2000’s, investors could do no wrong.

You could buy SILVER at just about any price and it would go higher.

In today’s chart, you can see three large green bullish ascending triangles from the 2000’s that lead to big gains. But that was the bull market before the current bear market.

The tables have turned since the 2011 price top. Silver quickly formed a bearish descending triangle and fell another 50 percent when that broke down. This sent a vicious bear mark...



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ValueWalk

More Examples Of "Typical Tesla "wise-guy scamminess"

By Jacob Wolinsky. Originally published at ValueWalk.

Stanphyl Capital’s letter to investors for the month of March 2019.

rawpixel / Pixabay

Friends and Fellow Investors:

For March 2019 the fund was up approximately 5.5% net of all fees and expenses. By way of comparison, the S&P 500 was up approximately 1.9% while the Russell 2000 was down approximately 2.1%. Year-to-date 2019 the fund is up approximately 12.8% while the S&P 500 is up approximately 13.6% and the ...



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Biotech

Marijuana is a lot more than just THC - a pharmacologist looks at the untapped healing compounds

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

 

Marijuana is a lot more than just THC - a pharmacologist looks at the untapped healing compounds

Assorted cannabis bud strains. Roxana Gonzalez/Shutterstock.com

Courtesy of James David Adams, University of Southern California

Medical marijuana is legal in 33 states as of November 2018. Yet the federal government still insists marijuana has no legal u...



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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



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Mapping The Market

It's Not Capitalism, it's Crony Capitalism

A good start from :

It's Not Capitalism, it's Crony Capitalism

Excerpt:

The threat to America is this: we have abandoned our core philosophy. Our first principle of this nation as a meritocracy, a free-market economy, where competition drives economic decision-making. In its place, we have allowed a malignancy to fester, a virulent pus-filled bastardized form of economics so corrosive in nature, so dangerously pestilent, that it presents an extinction-level threat to America – both the actual nation and the “idea” of America.

This all-encompassing mutant corruption saps men’s souls, crushes opportunities, and destroys economic mobility. Its a Smash & Grab system of ill-gotten re...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

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

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

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.

Some other great content in this free eBook includes:

 

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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