More Insider Selling Stats - MSFT, INTC, IBM, etc.
KIS - I wrote a VB app that made the task very simple (the
app reads data from MSN and pumps it into a spreadsheet).
So, it was really no trouble (I wanted to see the data
myself anyway).
I'm going to send the stats to a contact at TheStreet.com
to see if they have any interest in publishing the data in a
story. If so, I will request that you receive mention for
the idea (let me know if you would like the mention to be
something other than 'KeepItSimple from Silicon Investor').
I'm not certain what conclusions could be drawn from the
data. The most immediate conclusion would be that
insiders are dumping shares of internet companies as fast
as they can - showing an extreme lack of confidence. But
it is possible that VCs and investment banks generally sell
off large portions of their positions soon after IPO. Of
course, you can't really say the action in AMZN or YHOO
qualifies as being "soon after the IPO". Even if these
stats do become well known - I'm not certain they will have
much impact on swaying people's opinions of these stocks.
Fundamentals have never been important with these stocks
- and so why should it be important if "insiders consider
fundamentals important"? Bubbles are not built on any
rational thinking.
More data - the table below provides similar stats for
a random selection of "established" high tech companies.
As is indicated in the tables, proceeds from insider selling
in these companies is dramatically lower when compared with
revenue and profit than the previously listed DOT companies:
Ticker Insider Rev Inc Ins/Rev Ins/Inc
MSFT $3,918 $19,000 $6,940 0.21 0.56
INTC $190 $28,200 $7,370 0.01 0.03
CSCO $421 $12,100 $1,940 0.03 0.22
DELL $2,499 $21,700 $1,590 0.12 1.57
MOT $27 $30,200 $563 0.00 0.05
COMS $87 $5,770 $403 0.02 0.22
IBM $114 $87,400 $7,700 0.00 0.01
CPQ $108 $38,500 $970 0.00 0.11
Total $7,365 $242,870 $27,476 0.03 0.27
Thanks,
-Eric Wells |
