Can anyone here provide some explanation for these Insider sell/buy observations and resultant psycho-dynamics (sorry if discussed already):
At this location:
stocksmart.com
I did not see a single insider of CYMI buying the stock for more than $8 (pre-split) i.e. for more than $4 now!!
Looks like all buys took place no later than 05/01/97 ...
since then, they were selling CYMI like there is no tomorrow.
Does anyone here know anything Vickers has to say about this?
Director "F D Townsen" was comfortable to sell a huge number - 80,000 - of shares on 05/07/97 for $50 (pre-split i.e. $25 now) a piece as per this table. So, the public must be thinking now that "if thats too high for them, then why not for me" ... and I guess this reasoning led to the massive unloading today (of course in addition to the MS downgrade).
Now, if none of the inside guys, who are supposedly the most knowledgeable of the present business condition, would step-in at this juncture to buy any of their own stock, why should a poor Joe of the street? With this psychology, imho, the only convincing action the management can take at present, to revive the confidence in the public, is to "go out there in the market and buy CYMI shares for their own personal account" and I mean buy huge (not just a token share ... else it will backfire big time) and make that knowledge public asap. But can they do that? More importantly, why they would do that (if they know better)? And most importantly, would they really feel like doing that if their kid's college-funds were on line?
If the answer to the last question is "Yes" ... then thats all, it will answer everything clearly in a nanosecond ... and no more questions!
But if the answer is "no", then the analysts will keep on feeling comfortable downgrading this until it hits 16 [= 4 * 2 (for the usual profit potential sought by insiders) * 2 (max for the elapsed time-value, business appreciation etc.)], imho.
regards to all,
-/Sonny. |
