DMA wrote:
No worries WW.
That is what I mean about this market.
Even the bag holders are scrapping up more cash to pile in.
Insiders are piling out (selling their shares).
Just like 2000.
Some have different opinions:
Don't Get Misled by Insider Sales
By James J. Cramer
RealMoney.com Columnist
8/5/2005 8:20 AM EDT
Click here for more stories by James J. Cramer
This column was originally published on RealMoney
on Aug. 4 at 1:25 p.m. EDT. It's being republished as a bonus for TheStreet.com
readers.
Insiders buy when they want to make money. Insiders sell for a host of reasons: taxes, divorce, lifestyle or just good financial planning. Yet the media love to focus on it -- so do the short funds -- because it is accessible and so easily compiled.
In fact, insider selling documents have inspired a whole silly cottage industry of newsletters, all purporting to get you out of trouble before it happens.
[align=right]
I have a theory. As someone who has spent his whole life advising rich people -- and the people behind these companies are most certainly rich -- consider that the uniform advice anyone gives to these people is, "Be sure to take something off the table."
I am friendly with or know everyone behind these sales. I know the advice they got. In some cases, I help give it. That anyone would react to this stuff by dumping these stocks is just plain uninformed.
Why point it out? Because I need you to think harder than this before you sell a great stock. Great stocks are hard to come by. If you flip out on this data, you are just playing right into the hands of the hucksters who shill it and the shorts who promote it.
Don't be a victim.
Think!
When They Sell, Don't Panic
Here's how homebuilders performed after insider sales
Company
Total Insider Sales
% of Market Cap
1 Year Performance
2 Year Performance
CTX
$39,256,961.24
0.42%
69.98%
116.35%
KBH
$246,501,104.76
3.31%
146.17%
184.76%
PHM
$31,316,800.00
0.26%
67.20%
187.62%
LEN
$40,405,622.35
0.40%
57.54%
103.22%
TOL
$868,088,559.60
10.32%
168.19%
279.58%
Source: Nasdaq.com[/align]