Go to Jeff Salisbury LWGate Home Page.From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] USLB
Date: Thu, 2 May 2002 20:52:27 -0400
Previous Article (by Subject): Re: [CANSLIM] Today's IBD "Big Picture" comments... "Dan Forant"
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I have had successful runs on companies with huge insider ownership,
although 70% is really a lot. With that much, they can vote to do anything
they want. On the other hand, they also have the most at stake to make the
company succeed, at least as long as it is publicly traded.
Management selling is not always bad. I got four Form 144 alerts last night
(insider filing to sell) on Taser. Wrote the Chairman and asked why he would
be selling if he really expects FAA approval this week. Answered back that
he expects it within 10 days, and the filing is good for 90 days. That's the
way for insiders to sell, when the stock is in demand, even if they don't
get the best price.
Why would an insider sell if he thinks things are going great and will get
better? Because often their entire net worth is tied up in one company, and
they need to diversify. Also, they may have options about to expire that are
deep in the money. Can't just exercise the options, need to sell stock to
pay the immediately due tax bill. Some also sell because they want to buy a
house, car, plane, whatever.
Tom Worley
stkguru@bellsouth.net
AIM: TexWorley
- ----- Original Message -----
From: <Spencer48@aol.com>
To: <canslim@lists.xmission.com>
Sent: Thursday, May 02, 2002 2:51 PM
Subject: Re: [CANSLIM] USLB
Tom:
And if management has been selling, I'd want to know why (or at least,
approximately why) they've been selling (I wouldn't be surprised if the
reason they've sold-if they have-is due to the declining profit margins you
alluded to.)
jans
In a message dated 5/1/2002 9:16:01 PM Eastern Daylight Time,
stkguru@bellsouth.net writes:
<< When I look at this one, I see earnings for past 4 qtrs are up, down, up,
down. However, sales are consistently up all four qtrs. That tells me they
may be having a problem with profit margins that I would want to
investigate.....Additionally, management owns 70%, so I would check and see
if they have been selling, might explain part of the drop.
>>
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