insider selling

Cluster insider selling is not a cluster**ck

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I’ve spent the last two days going over cluster insider selling reports from the Washington Service.  It’s generally agreed that insider selling is not as useful in predicting stock prices as buying but cluster selling does have some onerous implications.  If the consensus opinion at a company is that management wants to lighten up, then you have to ask yourself why you are plunking down your hard earned money on their stock. There’s an obscene amount of insider selling going on right now.  I guess I say obscene because I wish I had Peter Thiel’s $450 million dollars worth of … Read more

Strategic Insider Selling – SEC gives giant loophole to corporate insiders

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First off- this is not news.  This loophole has been in existence since 2000 but it’s sinister characteristics have not been adequately publicized.  I am including in this post the entire paper I found from the Yale Law Library written by Todd Henderson of the University of Chicago Law School, Alan D. Jagolinzer from Stanford University Graduate School of Business, and Karl A. Muller, III of  The Pennsylvania State University Smeal College of Business.  It’s the most comprehensive analysis of this problem I have found to date although the authors are predictably looking at it from the perspective of protecting their corporate clients not John … Read more