Insider's Buying & Selling (General News)

[winston]

Billionaires Dumping Stocks

Market Collapse In Process?

Billionaires Continue To Dump U.S. Stocks, Traders Are Betting Against U.S. Economy!

http://investmentwatchblog.com/market-c ... s-economy/

[winston]

Are Insiders Signaling These Companies are Stocks to Sell ? By Tim Melvin

Recently Money Morning Chief Strategist Keith Fitz-Gerald pointed out that insider selling has been soaring of late.

He pointed out that according to Vickers Weekly Insider Report the ratio of insider selling to buying by officers and directors stood at better than 9 to 1.

This is a level that has been predictive of near-term tops in the stock market and individual investors need to be on alert for potentially falling stock prices ahead.

While this indicator is not a precise timing measurement it is a red flag telling us that the people running publicly traded companies have concerns about valuation and prospects as we head deeper into 2013.

Insiders can tell us something about the potential performance of individual companies as well.

http://moneymorning.com/2013/02/14/are- ... s-to-sell/

[winston]

Insider selling has quietly soared to two-year highs

Corporate executives are taking advantage of near-record U.S. stock prices by selling shares in their companies at the fastest pace in two years.

There were about 12 stock-sale announcements over the past three months for every purchase by insiders at Standard & Poor's 500 Index (SPX) companies, the highest ratio since January 2011, according to data compiled by Bloomberg and Pavilion Global Markets.

Whenever the ratio exceeded 11 in the past, the benchmark index declined 5.9 percent on average in the next six months, according to Pavilion, a Montreal-based trading firm.


Source: Bloomberg

[winston]

Little-known signal could be one of the most powerful indicators on Wall Street. What it's saying now.

http://thecrux.com/this-secret-insider- ... h-warning/

[winston]

Have Insiders Turned Bearish on the Market?

by Alexander Green

http://www.investmentu.com/article/deta ... ziqxc40OZR

[winston]

Forms 13F & 13D

All big investors that are managing more than $100 million are required to publicly disclose their holdings every quarter. They have 45 days from the end of the quarter to file that disclosure with the SEC. It’s called a form 13F.

While these filings have become very popular fodder for the media, what we care more about is 13D filings. Those are disclosures these big investors have to make within 10 days of taking a controlling stake in a company. When you own 5% or more of a company’s stock, it’s considered a controlling stake.

In a publicly traded company, with that sized position, you typically become the largest shareholder and, as we know, with that comes influence. Another key attribute of this 13D filing, for us, is that these investors also have to file amendments to the 13D within 10 days of making any change to their position.

By comparison, the 13F filings only offer value to the extent that there is some skilled analysis applied. Thousands of managers file 13Fs every quarter and the difference in manager talent, strategies and portfolio size run the gamut.

With that caveat, there are nuggets to be found in 13Fs. Let's talk about how to find them, and the take aways from the recent filings.

First, it’s important to understand that some of the positions in 13F filings can be as old as 135 days. Filings must be made 45 days after the previous quarter ends, which is 90 days. We only look at a tiny percentage of filings, just the investors who we know have long and proven track records, distinct approaches and have concentrated portfolios.

Through our research over 15 years, here’s what we’ve found to be most predictive:

1. Clustering in stocks and sectors by good hedge funds is bullish. Situations where good funds are doubling down on stocks is bullish. This all can provide good insight into the mindset of the biggest and best investors in the world, and can be a predictor of trends that have yet to materialize in the market’s eye.

2. For specialist investors (such as a technology focused hedge fund) we take note when they buy a new technology stock or double down on a technology stock. This is much more predictive than when a generalist investor, as an example, buys a technology stock.

3. The bigger the position relative to the size of their portfolio, the better. Concentrated positions show conviction. Conviction tends to result in a higher probability of success. Again, in most cases, we will see these first in the 13D filings.

4. New positions that are large, but under 5%, are worthy of putting on the watch list. These positions can be an indicator that the investor is building a position that will soon be a “controlling stake.”

5. Trimming of positions is generally not predictive unless a hedge fund or billionaire cuts a position by 75% or more, or cuts below 5% (which we will see first in 13D filings). Funds also tend to trim losers into the fourth quarter for tax loss benefits, and then they buy them back early the following year.

With some of the best investors in the world--for the past 15-20 years--working out of drawdowns and poor performing periods, it will be interesting to see how they've been positioning. After all, some of their best performance, historically, tends to come following a drawdown.

Source: Forbes

[winston]

This little-known strategy allows you to follow the ‘smart money’

by Anthony Summers

Source: Oxford Club

http://thecrux.com/wall-streets-illuminati/

[winston]

Executives are selling off their company's stock at a record pace

With September not yet over, stock sales by company executives reached $5.7 billion, according to data from TrimTabs Investment Research -- the highest September in a decade. August's $10.3 billion in insider sales also reached a 10-year record.

Companies this year have announced $827 billion in spending to purchase their own shares -- well above the buybacks that took place during all of 2007, which set the previous annual record.

"We give stock to corporate managers to convince them to create the kind of long-term value that benefits American companies and the workers and communities they serve," he said.

"Instead, what we are seeing is that executives are using buybacks as a chance to cash out their compensation at investor expense." In June, a group of senators asked the SEC to review its buyback rules.

Said Santschi: "Insiders are doing one thing with their own money, and another thing with shareholders' money."

Source: CBS

https://www.cbsnews.com/news/insider-st ... cord-pace/

[winston]

U.K.-based data-analysis firm Smart Insider tracks insider buying and selling.

And it says insiders are on track to sell $26 billion worth of stock this year – the highest total since they sold $37 billion in 2000.

The firm also noted big insider shareholders at Walmart (WMT), Estee Lauder (EL), and Lululemon Athletica (LULU) were particularly aggressive sellers recently.

Insiders know more about their businesses than you do. More than I do. More than Warren Buffett does (most of the time).

A piddling few will be honest enough to say, "I'm heading for the exits, so I'll have something left if I get fired before the market bottoms."

They'll mostly say things like, "No matter how bad it looks, we're fine. Buy the stock. I'm just selling a few shares as part of a long-term plan."

Source: Extreme Value

[winston]

"Our Indicator Is Flashing A Warning Sign": Insider Selling Soars To Near Record Highs

by Tyler Durden

Nearly 1,000 corporate executives and officers, have sold shares in their own companies this month, outpacing insider buyers by a ratio of 5-to-1.

How big is this insider selling frenzy in context?

According to Bloomberg, "only twice in the past three decades has the sell-buy ratio been higher than now."

Source: Zero Hedge

https://www.zerohedge.com/markets/our-i ... cord-highs