Tuesday :: Dec 14, 2004

Corporate Insiders Dumped 46 Times More Stock Last Month Than They Bought

by Steve

We are told by a variety of our GOP friends and Bush supporters how well things are going in Bush’s recovery. If things are really going so well, and if Wall Street has so much confidence in the market and Bush’s recovery and economy, then why did insider selling of stocks reach a four-year high last month? In fact, if the future looks so good, why did insiders sell 46 times more stock last month than they bought?

Some $6.6 billion in insider stock sales took place last month, the highest level since the $7.7 billion in sales tallied in August 2000, according to Thomson. Contrast that with the $144 million worth of stock that was bought by insiders last month.

Selling of shares by insiders - which includes executives and other top officers and directors at a company - has been rampant in recent months, with sales rising to their highest level in more than four years in November.

The most selling came from in the financial sector, where executives sold $882 million of their own stock in November, and health care companies, whose insiders sold $734 million worth of shares. Selling in both sectors was double the five-year monthly average, according to Thomson.

The financial sector? What the hell is going on here? After dumping large amounts of money into getting Bush elected in 2004, they all get a huge case of buyers' remorse and start dumping stock after the election? There's a ringing vote of confidence for you!

And we’re supposed to let average citizens turn their Social Security over to the tender mercies of the stock market?

Steve :: 6:28 PM :: Comments (8) :: Digg It!