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Cramer/Brocade/MSDW/Insider selling completed...
MSDW ready to hit pull the trigger on Ariba after this insider dump ends? It could happen.
--Bill
"Wrong! Dispatches From the Front: Can't Rain on This Brocade
By James J. Cramer
11/22/99 3:02 PM ET
So, it was Brocade's (BRCD:Nasdaq) turn. This stock has been resting, absorbing all of the new supply. It looked like a sitting duck on that pond, just waiting for some buckshot.
Join the discussion on Cramer's Latest or go to the Red Hots Forum.
Next thing you know, Brocade's on fire, with a Morgan Stanley upgrade fueling the advance.
I should have been able to game the darn thing. I should have been able to figure out when the insiders were done and the stock was ready to rock again. But they don't teach you how to game venture capital insider selling in school. Graham and Dodd didn't write much about it. Peter Lynch didn't warn us about it. Those corporate finance courses didn't cover it very well.
Yet, if you were to tell me the most important single criterion in determining when a stock is going to rally, it would be knowledge of when this kind of insider selling is over.
Don't believe me? Check out the chart of Broadcom (BRCM:Nasdaq). This stock bided time just like Brocade. It turned out that it was the insiders selling. When they finished, it was off to the races.
Nothing had changed at the company. Nothing had changed at Brocade, either. Or, as my wife would say, "You have to buy these hot stocks when you can, not when you have to." |
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