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INSIDER BUYING REMAINS NON-EXISTENT

12 October 2009 by Cullen Roche 3 Comments

The negative trend in insider selling and weak buying continued this week.  The latest data shows that insiders sold a total of $461.25MM and purchased just $16.5MM.   As we mentioned last week, insiders are highly skeptical of the sustainability of the liquidity driven rally.  The next few quarters are likely to be pivotal as we begin to get real evidence of a revenue based earnings recovery or we continue to see weak cost cutting based earnings growth.  My gut tells me the insiders aren’t entirely wrong here – revenues won’t recover at a robust rate and the insider selling will ultimately prove to be quite prescient.

Figure 1 – selling:

it1

Figure 2 – buying:

it2

Figure 3 – daily buying

it3

Cullen Roche

Cullen Roche

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Comments
  • Pierre

    Didn’t you mean “Indiser buying remaing non existent ?”

    10/12/2009 at 12:38 AM
  • Cullen Roche TPC

    Sorry for the error everyone….It’s been fixed.

    10/12/2009 at 8:58 AM
  • Pradeep

    It could be a sign that most of these executives and insiders borrowed money against their stocks.

    Now the time has come for deleveraging and they need to cash to pay off their debts.

    10/12/2009 at 2:03 PM