Go to Jeff Salisbury LWGate Home Page.From: "Kelly Short" <kelly.short@tx.us.neoris.com>
Subject: RE: [CANSLIM] Insider Trades
Date: Thu, 29 Aug 2002 10:17:16 -0500
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Katherine,
=20
That's a pretty telling story right there! I would imagine the sharp =
decline in June/July is not a result of the industry going bullish all =
of a sudden after their huge selloff!
=20
Kelly
- -----Original Message-----
From: Katherine Malm [mailto:kmalm@earthlink.net]
Sent: Thursday, August 29, 2002 8:54 AM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] Insider Trades
Here's one that caught my eye when reviewing the industry trends =
recently:
=20
http://insider.thomsonfn.com/tfn/insider.asp?imodule=3DindTearsheet =
(tearsheet for Homebuilders)
=20
Now *that's* some selling!
=20
Katherine
=20
=20
- ----- Original Message -----=20
From: David Taggart <mailto:dctag@mavericktrading.com> =20
To: canslim@lists.xmission.com=20
Sent: Thursday, August 29, 2002 8:17 AM
Subject: RE: [CANSLIM] Insider Trades
I dont use it enough but I keep reminding myself to study insider =
buying/selling. As a general statement I agree on insider selling not =
being to important and insider buying being quite useful. I have read =
that in a few different books and interviews from people I pay attention =
to like Marty Zweig and Norman Fosback who wrote Stock Market Logic. =
But what I need to go research is the extremes of both. In Stock Market =
Wizards by Schwager he interviews Ahmet H. Okumus who says he uses =
insider buying/selling extensively talking about how regular insider =
activity doesnt have much predictive power but he goes and looks at the =
amount bought/sold compared to the insiders net worth and things like =
that and judging by his trading results it must work. But for right now =
I just do a cursory glance to see if they are buying or selling but dont =
use it as key decision making tool.
=20
David Taggart
- -----Original Message-----
From: owner-canslim@lists.xmission.com =
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Tom Worley
Sent: Thursday, August 29, 2002 7:07 AM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] Insider Trades
I have always ignored insider selling as "noise", since there are many =
reasons behind it (buying a house, diversifying their finances, new car, =
college tuition, options in the money and about to expire, etc.) that =
have nothing to do with "M", their company, or anything else we could =
care about. On the other hand, I know of only two good reasons for =
insiders to be a buyer - hype the stock (build confidence), or to make =
money (they see it as their best investment opportunity).=20
=20
On the other hand, I have found few insiders that really understand the =
markets and how the investment community behaves. And insiders that have =
sold are prohibited from buying new shares within 12 months, I think, so =
they can't trade their company stock.
=20
A parity ratio is indeed significant, especially given corporate =
governance issues today, and the new rules on disclosure about to take =
affect. But we also don't want bullish sentiment, we want everyone =
scared of a total collapse!! With Martha Stewart now being sued by a =
shareholder for selling her own company stock (presumably in =
anticipation of it tanking eventually when her Imclone trade being =
revealed, which both happened later), I also wonder how many insiders =
may be deciding not to sell for fear of perception, especially if they =
know there is anything questionable.
=20
Oh, I am so cynical these days!!! Guess that's what happens when I get =
stopped out on two stocks in just one day, and I don't normally even use =
hard stops.
=20
- ----- Original Message -----=20
From: Katherine <mailto:kmalm@earthlink.net> Malm=20
To: canslim@lists.xmission.com=20
Sent: Thursday, August 29, 2002 8:52 AM
Subject: [CANSLIM] Insider Trades
Hi All,
=20
This excerpt is from John Mendelson's Weekly report (Schwab Capital =
Markets). I thought it interesting from a CANSLIM point of view, as =
insider trading patterns are one of the secondary indicators under =
buying/selling strategies. As insiders will be required to report more =
quickly, I wonder if this will create more "noise" or provide more =
information when looking at the charts. Thought I'd also include a link =
for my favorite insider tracking site: =
http://insider.thomsonfn.com/tfn/insider.asp?linkcode=3D7rdcg6divt9fsuu5a=
wkj.
=20
- --Katherine
=3D=3D=3D=3D=3D=3D=3D=3DMendelson Excerpt (highlighting is =
mine)=3D=3D=3D=3D=3D=3D=3D=3D=3D
Some recent market statistics look encouraging. Corporate executives =
appear to be more optimistic
on their own companies as the insider trading data for the week ended =
August 16, 2002 showed a parity of
sales to purchases (a ratio of 1.01), as opposed to the 4 to 1 ratio of =
sales to purchases two months ago,
according to Vickers Weekly Insider Report. Ratios close to 1 to 1 =
between insider sales and purchases have
been very unusual over the past thirty years with these events producing =
a gain of about 30% in the popular
market averages over the next year. An classic example of the insider =
trading ratio dropping to around parity
was the 1.18 reading for the week ended August 20, 1982, just after a =
major bottom in the market. The recent
August 16 ratio was three weeks after the July 24, 2002 low. Since most =
corporate insiders acquire their
stock in grants or by exercising options rather than by outright =
purchases and because executives buy homes,
educate children etc., selling normally outweighs buying. For years, I =
have believed a ratio of less than 2 to 1
is a bullish sign....as noted above, the latest reading is 1.01 to 1. =
This indicator may become even more=20
useful, as next month companies will be required to report insider =
trades within two days of execution rather
than the current regulation of reporting by the 10th of the month.
_____ =20
For your protection, this e-mail message has been scanned for viruses.=20
Visit us at http://www.neoris.com/=20
_____ =20
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<DIV><SPAN class=3D328141615-29082002><FONT face=3DArial color=3D#0000ff =
size=3D2>Katherine,</FONT></SPAN></DIV>
<DIV><SPAN class=3D328141615-29082002><FONT face=3DArial color=3D#0000ff =
size=3D2></FONT></SPAN> </DIV>
<DIV><SPAN class=3D328141615-29082002><FONT face=3DArial color=3D#0000ff =
size=3D2>That's=20
a pretty telling story right there! I would imagine the sharp decline in =
June/July is not a result of the industry going bullish all of a sudden =
after=20
their huge selloff!</FONT></SPAN></DIV>
<DIV><SPAN class=3D328141615-29082002><FONT face=3DArial color=3D#0000ff =
size=3D2></FONT></SPAN> </DIV>
<DIV><SPAN class=3D328141615-29082002><FONT face=3DArial color=3D#0000ff =
size=3D2>Kelly</FONT></SPAN></DIV>
<BLOCKQUOTE dir=3Dltr style=3D"MARGIN-RIGHT: 0px">
<DIV class=3DOutlookMessageHeader dir=3Dltr align=3Dleft><FONT =
face=3DTahoma=20
size=3D2>-----Original Message-----<BR><B>From:</B> Katherine Malm=20
[mailto:kmalm@earthlink.net]<BR><B>Sent:</B> Thursday, August 29, 2002 =
8:54=20
AM<BR><B>To:</B> canslim@lists.xmission.com<BR><B>Subject:</B> Re: =
[CANSLIM]=20
Insider Trades<BR><BR></FONT></DIV>
<DIV>Here's one that caught my eye when reviewing the industry trends=20
recently:</DIV>
<DIV> </DIV>
<DIV><A=20
=
href=3D"http://insider.thomsonfn.com/tfn/insider.asp?imodule=3DindTearshe=
et">http://insider.thomsonfn.com/tfn/insider.asp?imodule=3DindTearsheet</=
A> (tearsheet=20
for Homebuilders)</DIV>
<DIV> </DIV>
<DIV>Now *that's* some selling!</DIV>
<DIV> </DIV>
<DIV>Katherine</DIV>
<DIV> </DIV>
<DIV> </DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Ddctag@mavericktrading.com=20
href=3D"mailto:dctag@mavericktrading.com">David Taggart</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Thursday, August 29, =
2002 8:17=20
AM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> RE: [CANSLIM] =
Insider=20
Trades</DIV>
<DIV><BR></DIV>
<DIV><SPAN class=3D102410813-29082002><FONT face=3DArial =
color=3D#0000ff size=3D2>I=20
dont use it enough but I keep reminding myself to study insider=20
buying/selling. As a general statement I agree on insider =
selling not=20
being to important and insider buying being quite useful. I =
have read=20
that in a few different books and interviews from people I pay =
attention to=20
like Marty Zweig and Norman Fosback who wrote Stock Market =
Logic. But=20
what I need to go research is the extremes of both. In Stock =
Market=20
Wizards by Schwager he interviews <STRONG><FONT face=3D"Times New =
Roman"=20
color=3D#000000 size=3D3>Ahmet H. Okumus who says he uses insider=20
buying/selling extensively talking about how regular insider =
activity=20
doesnt have much predictive power but he goes and looks at the =
amount=20
bought/sold compared to the insiders net worth and things like that =
and=20
judging by his trading results it must work. But for right now =
I just=20
do a cursory glance to see if they are buying or selling but dont =
use it as=20
key decision making tool.</FONT></STRONG></FONT></SPAN></DIV>
<DIV><SPAN =
class=3D102410813-29082002><STRONG></STRONG></SPAN> </DIV>
<DIV><SPAN class=3D102410813-29082002><STRONG>David=20
Taggart</STRONG></SPAN></DIV>
<BLOCKQUOTE dir=3Dltr style=3D"MARGIN-RIGHT: 0px">
<DIV class=3DOutlookMessageHeader dir=3Dltr align=3Dleft><FONT =
face=3DTahoma=20
size=3D2>-----Original Message-----<BR><B>From:</B>=20
owner-canslim@lists.xmission.com=20
[mailto:owner-canslim@lists.xmission.com]<B>On Behalf Of </B>Tom=20
Worley<BR><B>Sent:</B> Thursday, August 29, 2002 7:07 =
AM<BR><B>To:</B>=20
canslim@lists.xmission.com<BR><B>Subject:</B> Re: [CANSLIM] =
Insider=20
Trades<BR><BR></FONT></DIV>
<DIV><FONT face=3DArial>I have always ignored insider selling as =
"noise",=20
since there are many reasons behind it (buying a house, =
diversifying their=20
finances, new car, college tuition, options in the money and about =
to=20
expire, etc.) that have nothing to do with "M", their company, or =
anything=20
else we could care about. On the other hand, I know of only two =
good=20
reasons for insiders to be a buyer - hype the stock (build =
confidence), or=20
to make money (they see it as their best investment=20
opportunity). </FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=3DArial>On the other hand, I have found few =
insiders=20
that really understand the markets and how the investment =
community=20
behaves. And insiders that have sold are prohibited from =
buying new=20
shares within 12 months, I think, so they can't trade their =
company=20
stock.</FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=3DArial>A parity ratio is indeed significant, =
especially=20
given corporate governance issues today, and the new rules on =
disclosure=20
about to take affect.</FONT> <FONT face=3DArial>But we also =
don't want=20
bullish sentiment, we want everyone scared of a total collapse!! =
With=20
Martha Stewart now being sued by a shareholder for selling her own =
company=20
stock (presumably in anticipation of it tanking eventually when =
her=20
Imclone trade being revealed, which both happened later), I also =
wonder=20
how many insiders may be deciding not to sell for fear of =
perception,=20
especially if they know there is anything =
questionable.</FONT></DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV><FONT face=3DArial>Oh, I am so cynical these days!!! Guess =
that's what=20
happens when I get stopped out on two stocks in just one day, and =
I don't=20
normally even use hard stops.</FONT></DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV>----- Original Message ----- </DIV>
<DIV style=3D"FONT: 10pt arial">
<DIV style=3D"BACKGROUND: #e4e4e4; font-color: black"><B>From:</B> =
<A=20
title=3Dkmalm@earthlink.net =
href=3D"mailto:kmalm@earthlink.net">Katherine=20
Malm</A> </DIV>
<DIV><B>To:</B> <A title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
</DIV>
<DIV><B>Sent:</B> Thursday, August 29, 2002 8:52 AM</DIV>
<DIV><B>Subject:</B> [CANSLIM] Insider Trades</DIV></DIV>
<DIV><BR></DIV>
<DIV>Hi All,</DIV>
<DIV> </DIV>
<DIV>This excerpt is from John Mendelson's Weekly report (Schwab =
Capital=20
Markets). I thought it interesting from a CANSLIM point of view, =
as=20
insider trading patterns are one of the secondary indicators =
under=20
buying/selling strategies. As insiders will be required to report =
more=20
quickly, I wonder if this will create more "noise" or provide more =
information when looking at the charts. Thought I'd also include a =
link=20
for my favorite insider tracking site: <A=20
=
href=3D"http://insider.thomsonfn.com/tfn/insider.asp?linkcode=3D7rdcg6div=
t9fsuu5awkj">http://insider.thomsonfn.com/tfn/insider.asp?linkcode=3D7rdc=
g6divt9fsuu5awkj</A>.</DIV>
<DIV> </DIV>
<DIV>--Katherine</DIV>
<DIV>=3D=3D=3D=3D=3D=3D=3D=3DMendelson Excerpt (highlighting is =
mine)=3D=3D=3D=3D=3D=3D=3D=3D=3D</DIV>
<DIV>
<P>Some recent market statistics look encouraging. Corporate =
executives=20
appear to be more optimistic</P>
<P>on their own companies as the insider trading data for the week =
ended=20
August 16, 2002 showed a parity of</P>
<P>sales to purchases (a ratio of 1.01), as opposed to the 4 to 1 =
ratio of=20
sales to purchases two months ago,</P>
<P>according to Vickers Weekly Insider Report. Ratios close to 1 =
to 1=20
between insider sales and purchases have</P>
<P>been very unusual over the past thirty years with these events=20
producing a gain of about 30% in the popular</P>
<P>market averages over the next year. An classic example of the =
insider=20
trading ratio dropping to around parity</P>
<P>was the 1.18 reading for the week ended August 20, 1982, just =
after a=20
major bottom in the market. The recent</P>
<P>August 16 ratio was three weeks after the July 24, 2002 low. =
Since most=20
corporate insiders acquire their</P>
<P>stock in grants or by exercising options rather than by =
outright=20
purchases and because executives buy homes,</P>
<P>educate children etc., selling normally outweighs buying. For =
years, I=20
have believed a ratio of less than 2 to 1</P>
<P>is a bullish sign....as noted above, the latest reading is 1.01 =
to 1.=20
This indicator may become even more </P>
<P>useful, as <EM><FONT color=3D#0000ff>next month companies will =
be=20
required to report insider trades within two days of execution=20
rather</FONT></EM></P>
<P><EM><FONT color=3D#0000ff>than the current regulation of =
reporting by the=20
10th of the month.</FONT></EM></P></DIV></BLOCKQUOTE></BLOCKQUOTE>
<HR>
For your protection, this e-mail message has been scanned for viruses. =
<P>Visit us at <A =
href=3D"http://www.neoris.com/">http://www.neoris.com/</A>=20
<HR>
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