I was aware of that JDSU selling binge, Stephen. Of course, the notion that the execs get "hammered" by the rules really makes my heart bleed. Sounds like they locked themselves in with acquisitions. March and July were the only higher peaks they could have sold at in their history, so the poor dears didn't suffer all that much.
More important, I don't buy the explanation. That selling dropped the stock from 125 to 86, something the analysts never touch on when they discuss the whys & wherefores of a long mkt slide. When insiders sell en masse from leading companies, it certainly does impact investor confidence in the mkt.
Furthermore, the insiders also get to manipulate the unlocks.
For example, AETH weathered the Spring selloff by moving the unlock to October. In light of the current slide, they just moved it again, to Feb. They're trying to locate a good time to maintain maximum profits. Fine by me.
CORV did the same. An early unlock of 70m shares was scheduled for 10/25. Now they moved it back with the rest of their unlock, on Jan 24th.
Simply put, while it's true their money gets tied up for many months, they aren't helpless nor wandering the streets in pursuit of bread crumbs from missionaries demanding that they kneel.
And traders are wise to note when insiders sell, no matter what the official explanations are. Thanks for bringing it up, Stephen. |
